By Smart Emmanuel,
The African Development Bank Group (AfDB) has approved a $500 million loan to the Government of Nigeria to finance the second phase of the Economic Governance and Energy Transition Support Programme.
According to a statement by AfDB, the decision was made by the Bank’s Board of Directors during a meeting in Abidjan, Ivory Coast, and covers fiscal years 2024 and 2025.
Director General of the AfDB’s Office in Nigeria, Abdul Kamara, said, “The second phase of the programme aims to stimulate inclusive growth by accelerating structural reforms in the energy sector, while supporting progressive reforms of fiscal policy to boost non-oil revenues and expand fiscal space. The new phase will consolidate and build on the achievements of the first phase.”
He explained that the programme will deepen fiscal policy reforms by strengthening public financial management systems and enhancing transparency and efficiency in public spending. Kamara added that it will accelerate reforms in the power sector to reduce energy poverty, expand access to energy, improve governance, and attract private investment.
“We will also support the implementation of Nigeria’s energy transition plan through measures that promote climate change adaptation and mitigation, including the introduction of energy-efficiency standards for electrical appliances,” he said. The country’s Nationally Determined Contribution (NDC) will also be updated for the 2026–2030 period.
Key beneficiaries of the programme include federal institutions such as the Ministries of Power, Finance, and Environment, the Federal Inland Revenue Service, the Office of the Auditor General, the Debt Management Office, the Nigerian Electricity Regulatory Commission, and the National Climate Change Council of Nigeria.
Kamara noted that private businesses across the country are also expected to benefit from an improved investment climate, increased opportunities in the energy sector, and a framework more conducive to public-private partnerships at the state level.
As of 31 October 2025, the AfDB’s active portfolio in Nigeria included 52 projects with total commitments of $5.1 billion, highlighting the Bank’s continued support for the country’s economic and infrastructural development.
