The African Development Bank Group (AfDB) has approved a $500 million loan to Nigeria to fund the second phase of its Economic Governance and Energy Transition Support Programme.
The initiative is designed to strengthen Nigeria’s fiscal policies, modernize the energy sector, and advance the country’s climate action goals.
The approval, announced on Wednesday by AfDB spokesperson Alexis Adélé, was granted during a board meeting in Abidjan and covers fiscal years 2024 and 2025.
Three Key Pillars
The programme focuses on three main areas:
The programme focuses on three main areas:
1. Fiscal Policy Reforms: Improving public financial management, enhancing transparency, and promoting efficient government spending.
2. Energy Sector Modernization: Expanding electricity access, reducing energy poverty, improving governance, and attracting private investment.
3. Climate Action: Supporting the National Energy Transition Plan, implementing energy-efficiency standards, and fostering climate adaptation and mitigation measures.
Abdul Kamara, Director-General of AfDB’s Nigeria Office, said the second phase will consolidate gains from the first phase and stimulate inclusive growth. “We aim to accelerate structural reforms in the energy sector while enhancing fiscal policy to boost non-oil revenues and expand fiscal space,” he noted.
Key Beneficiaries and Impact
The loan will benefit several federal agencies, including the Ministries of Power, Finance, and Environment, the Nigerian Electricity Regulatory Commission, the Federal Inland Revenue Service, the Debt Management Office, the Office of the Auditor General, and the National Climate Change Council.
Private sector investors are also expected to gain from improved opportunities in energy-related ventures, strengthening Nigeria’s investment climate.
As of October 31, 2025, AfDB’s active portfolio in Nigeria includes 52 projects with a total commitment of $5.1 billion, reinforcing the Bank’s long-term commitment to supporting economic reforms, sustainable energy, and a resilient Nigerian economy.
