The African Development Bank Group (AfDB) has approved a $500 million loan to the Federal Government of Nigeria to fund the second phase of the Economic Governance and Energy Transition Support Programme.<\/p>\n
The programme is designed to strengthen fiscal policies, drive energy sector reforms, and support climate action initiatives.<\/p>\n
According to a statement by Alexis Ad\u00e9l\u00e9 of the AfDB\u2019s Communication and External Relations Department, the loan was approved by the Bank\u2019s Board of Directors during a meeting in Abidjan. The funding will cover Nigeria\u2019s fiscal years 2024 and 2025.<\/p>\n
Accord to the bank, the programme focuses on three strategic areas. First, it aims to improve fiscal policy by enhancing public financial management systems and promoting transparency and efficiency in government spending. Second, it targets energy sector reform, seeking to reduce energy poverty, expand electricity access, improve governance, and attract private investment. Third, the initiative supports Nigeria\u2019s energy transition plan, promoting climate change adaptation and mitigation and introducing energy-efficiency standards for electrical appliances nationwide.<\/p>\n
Abdul Kamara, Director-General of AfDB\u2019s Nigeria Office, said that the programme would stimulate inclusive growth by accelerating structural reforms in the energy sector and supporting fiscal policy reforms that boost non-oil revenue and expand fiscal space. He noted that this second phase will consolidate and build on achievements from the programme\u2019s first phase.<\/p>\n
The initiative will also update Nigeria\u2019s Nationally Determined Contribution for 2026\u20132030, aligning the country\u2019s climate commitments with global targets. Key beneficiaries include federal agencies such as the Ministries of Power, Finance, and Environment, the Federal Inland Revenue Service, the Nigerian Electricity Regulatory Commission, the Debt Management Office, the Office of the Auditor General, and the National Climate Change Council.<\/p>\n
Private sector participants are expected to benefit from improved investment conditions and expanded opportunities in energy projects across Nigerian states, as the programme promotes public-private partnerships.<\/p>\n
As of October 31, 2025, AfDB\u2019s active portfolio in Nigeria included 52 projects with a total commitment of $5.1 billion. The latest support reinforces AfDB\u2019s commitment to advancing Nigeria\u2019s economic governance reforms, sustainable energy transition, and efforts to create a resilient and inclusive economy.<\/p>\n","protected":false},"excerpt":{"rendered":"
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