The African Development Bank has approved a $40m loan for the Afe Babalola University, Ado Ekiti, Ekiti State.
In a statement on its website, the bank said its board of directors approved the loan on October 19, 2016.
The bank said it approved the loan due to inability of young Nigerians to gain admission into universities because of capacity constraint.
AfDB also stated poor curriculum in universities which has produced graduates who are not market-ready as one of the reasons for the intervention.
The AfDB said with the gesture it extended to ABUAD, it expected the university to turn out over 12,000 high-quality and employable graduates at end of the loan’s tenure.
The institution is also expected to construct facilities such as a 400-bed teaching hospital, an industrial research park and a 1.1megawatts small hydro power installation.