The Board of Directors of the African Development Bank (AfDB) Group has approved a $500 million loan to Nigeria to fund the second phase of the Economic Governance and Energy Transition Support Programme.
Abdul Kamara, Director-General of the AfDB’s Nigeria Country Department, said the policy-based operation will cover fiscal years 2024 and 2025, aiming to deepen structural reforms, strengthen energy systems, and expand fiscal space for inclusive growth.
Kamara noted that the new support builds on achievements under the first phase of the programme. “The second phase aims to stimulate inclusive growth by accelerating structural reforms in the energy sector while supporting progressive fiscal policy reforms to boost non-oil revenues,” he said.
The programme focuses on three key priorities:
- Fiscal Policy Strengthening: Enhancing public financial management, increasing transparency, and improving efficiency in public spending.
- Power Sector Reforms: Reducing energy poverty, expanding electricity access, improving governance, and attracting private-sector investment.
- Energy Transition Implementation: Supporting Nigeria’s national energy transition plan, including climate adaptation, mitigation measures, and rollout of energy-efficiency standards for appliances. Kamara added that Nigeria’s Nationally Determined Contribution (NDC) is expected to be updated for 2026–2030.
Direct beneficiaries include the Federal Ministries of Power and Finance, the Federal Inland Revenue Service, and the Auditor-General’s Office. Other institutions such as the Debt Management Office, National Climate Change Council, Ministry of Environment, and the Nigerian Electricity Regulatory Commission will also benefit.
Private businesses across states are expected to gain from a strengthened investment climate, improved energy-sector governance, and expanded public–private partnership opportunities.
As of October 31, the AfDB’s active portfolio in Nigeria included 52 projects valued at $5.1 billion.
