The African Development Bank Group has approved a new $500m loan for the Federal Government of Nigeria to finance the second phase of the Economic Governance and Energy Transition Support Programme.
The initiative is designed to strengthen fiscal policies, advance energy sector reforms, and drive climate action.
In a statement released on Wednesday by the Bank’s Communication and External Relations Department official, Alexis Adélé, the AfDB confirmed that its Board of Directors approved the loan during a meeting in Abidjan.
The policy-based operation covers fiscal years 2024 and 2025.
According to the statement, the programme focuses on three strategic pillars.
The first is deepening fiscal policy reforms by enhancing public financial management, increasing transparency, and improving the efficiency of government spending.
The second pillar targets reforms in the energy sector, aimed at reducing energy poverty, expanding electricity access, improving sector governance, and attracting greater private-sector investment.
The third area prioritises Nigeria’s energy transition and climate action, supporting the implementation of the national energy transition plan. It also seeks to strengthen climate adaptation and mitigation measures, including introducing energy-efficiency standards for appliances nationwide.
Abdul Kamara, Director-General of the AfDB’s Nigeria Office, said the second phase is geared toward accelerating inclusive growth by fast-tracking structural energy reforms and supporting progressive fiscal policies that boost non-oil revenues and widen fiscal space. He noted that the new phase will build on the successes of the first.
The programme will also guide the update of Nigeria’s Nationally Determined Contribution for 2026–2030, aligning climate commitments with global targets.
Key beneficiaries include ministries such as Power, Finance, and Environment, alongside agencies like the Federal Inland Revenue Service, Nigerian Electricity Regulatory Commission, Debt Management Office, Office of the Auditor General, and the National Climate Change Council of Nigeria.
The private sector is also expected to benefit from an improved investment climate and expanded opportunities in energy-related projects.
