The African Development Bank Group has approved a $500 million loan to Nigeria to finance the second phase of its Economic Governance and Energy Transition Support Programme, aimed at accelerating energy sector reforms, improving fiscal management, and fostering an investment-friendly environment across the Federation.
The Board of Directors of the African Development Bank Group has approved a $500 million loan to the Government of the Federal Republic of Nigeria to support the second phase of the Economic Governance and Energy Transition Support Programme, covering fiscal years 2024 and 2025. This policy-based operation builds on the achievements of the first phase and is designed to stimulate inclusive growth through structural reforms in the energy sector and progressive fiscal policy improvements.
Abdul Kamara, Director General of the Office of the African Development Bank Group in Nigeria, stated, “The second phase of the programme aims to accelerate reforms that enhance energy access, strengthen fiscal systems, and expand fiscal space through increased non-oil revenues. It consolidates prior achievements and introduces new measures for sustainable growth.”
The programme focuses on three core areas. First, it will deepen fiscal policy reforms by strengthening public financial management and improving the transparency and efficiency of public spending. Second, it will accelerate reform in the power engineering sector to reduce energy poverty, enhance governance, expand access to energy, and attract private investment. Third, it will support the implementation of Nigeria’s energy transition plan through climate adaptation and mitigation initiatives, including the introduction of energy-efficiency standards for electrical appliances. The Nationally Determined Contribution will also be updated for the 2026–2030 period.
Direct beneficiaries include the Federal Ministry of Power, Federal Ministry of Finance, Federal Inland Revenue Service, Office of the Auditor General, Debt Management Office, National Climate Change Council, Federal Ministry of the Environment, Nigerian Electricity Regulatory Commission, and other agencies responsible for social and economic policy.
Private businesses will also benefit through an improved investment climate, expanded energy sector opportunities at the state level, and a more favorable environment for public-private partnerships.
As of 31 October 2025, the African Development Bank Group maintained an active portfolio in Nigeria comprising 52 projects with a total commitment of $5.1 billion.
