African Development Bank (AfDB) Group has approved a loan of $500 million to Nigeria’s Federal Government to strengthen non-oil revenues and expand fiscal space.
AfDB
The bank, in a statement, said the loan will finance the second phase of the Economic Governance and Energy Transition Support Programme, covering fiscal years 2024 and 2025.
According to the AfDB, the programme aims to stimulate inclusive growth by accelerating structural reforms in the energy sector, while supporting progressive fiscal policy reforms.
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Abdul Kamara, Director General of the AfDB’s Nigeria Office, said the new phase would consolidate and build on the achievements of the first phase.
The programme will focus on three areas:
– Deepening fiscal policy reforms by strengthening public financial management and improving transparency in public spending.
– Accelerating power sector reforms to reduce energy poverty, expand access, improve governance, and attract private investment.
– Supporting Nigeria’s energy transition plan through climate adaptation and mitigation measures, including new energy-efficiency standards for electrical appliances.
The AfDB added that Nigeria’s Nationally Determined Contribution (NDC) will be updated for the 2026–2030 period.
Direct beneficiaries of the programme 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 of Nigeria, Federal Ministry of Environment, and the Nigerian Electricity Regulatory Commission.
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The bank noted that benefits would also accrue to private businesses through an improved investment climate and opportunities in the energy sector, as well as a more conducive environment for public-private partnerships.
As of Oct. 31, 2025, AfDB’s active portfolio in Nigeria comprised 52 projects with a total commitment of $5.1 billion.
