The African Development Bank Group has endorsed a $500 million loan to Nigeria to support ongoing fiscal reforms and accelerate the country’s transition to sustainable energy. The approval was issued by the Bank’s Board of Directors on Tuesday in Abidjan.
The facility forms the second phase of the Economic Governance and Energy Transition Support Programme, covering implementation across the 2024 and 2025 fiscal years.
Abdul Kamara, Director General of the AfDB’s Nigeria Country Office, said the new funding round is designed to reinforce the gains of the first phase while deepening reforms necessary to stimulate inclusive economic growth.
“This phase will consolidate previous achievements and help Nigeria expand its fiscal space, boost non-oil revenue, and fast-track structural reforms in the power sector,” Kamara said.
Three-Pronged Intervention
The programme will advance reforms in three major areas:
1. Fiscal and public finance reform: strengthening transparency, public financial management systems and ensuring more efficient government expenditure.
2. Power sector overhaul: supporting efforts to reduce energy poverty, widen electricity access, improve sector governance and attract greater private-sector participation.
3. Energy transition and climate action: facilitating Nigeria’s move toward clean and energy-efficient technologies, including new efficiency standards for electrical appliances and updating the Nationally Determined Contribution (NDC) for 2026–2030.
Key Beneficiaries
Institutions expected to benefit directly include the Federal Ministry of Finance, Federal Ministry of Power, Federal Inland Revenue Service, Office of the Auditor General, Debt Management Office, the National Climate Change Council, Ministry of Environment and the Nigerian Electricity Regulatory Commission.
Private businesses are also expected to gain from an improved investment climate, expanded opportunities in the energy market, and a more enabling environment for public-private partnerships across various states.
With the new approval, the AfDB’s active portfolio in Nigeria has risen to 52 projects valued at $5.1 billion as at 31 October 2025.
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