The African Development Bank (AfDB) has approved a $500 million loan to Nigeria to support the second phase of its Economic Governance and Energy Transition Support Programme. The funding, covering fiscal years 2024 and 2025, is designed to strengthen Nigeria’s fiscal policies, advance energy sector reforms, and promote climate action.

The programme focuses on three main areas. First, it aims to enhance fiscal policy by improving public financial management and ensuring more transparent and efficient government spending. Second, it seeks to accelerate energy sector reforms to increase access to electricity, reduce energy poverty, and attract private investment. Finally, the initiative supports Nigeria’s energy transition and climate goals by promoting energy efficiency, climate adaptation, and mitigation measures.

Abdul Kamara, Director-General of the AfDB’s Nigeria office, emphasized that the programme will help stimulate inclusive growth by building on the successes of its first phase. “This next stage will accelerate structural reforms in the energy sector while supporting progressive fiscal policies to expand non-oil revenues and fiscal space,” he said.

The programme also includes updating Nigeria’s Nationally Determined Contribution (NDC) for 2026–2030 to align with international climate targets. Key beneficiaries include federal ministries such as Power, Finance, and Environment, as well as agencies like the Federal Inland Revenue Service, Nigerian Electricity Regulatory Commission, and the National Climate Change Council.

Private sector players are also expected to benefit from an improved investment climate and expanded opportunities for public-private partnerships in energy projects across the country.

As of October 31, 2025, the AfDB had 52 active projects in Nigeria, with a total commitment of $5.1 billion, underscoring the bank’s ongoing support for Nigeria’s economic reforms and sustainable development efforts.