The Board of Directors of the African Development Bank Group has approved a $500 million loan to the Government of Nigeria to finance the second phase of the Economic Governance and Energy Transition Support Programme, covering fiscal years 2024 and 2025. This phase builds on earlier progress and aims to advance economic reforms while supporting Nigeria’s shift toward sustainable energy.
According to the Bank, the programme is designed to accelerate structural reforms in the energy sector and strengthen fiscal policy to boost non-oil revenue and expand fiscal space. By reinforcing the achievements of the first phase, it seeks to support more inclusive economic growth.
The programme focuses on three priority areas. The first area aims to deepen fiscal policy reforms by improving public financial management, strengthening transparency, and enhancing the efficiency of public spending. The second targets accelerated reform of Nigeria’s power sector to reduce energy poverty, expand access, improve governance, and attract private investment. The third area supports the implementation of Nigeria’s energy transition plan by promoting climate adaptation and mitigation measures, including the introduction of energy-efficiency standards for electrical appliances. Nigeria’s Nationally Determined Contribution will also be updated for the 2026–2030 period.
Direct beneficiaries include key government institutions such as the Federal Ministry of Power, the Federal Ministry of Finance, the Federal Inland Revenue Service, the Office of the Auditor General, the Debt Management Office, the National Climate Change Council, and the Nigerian Electricity Regulatory Commission, among others responsible for economic and social policy implementation.
The programme is also expected to benefit private businesses by improving the investment climate, creating new opportunities within the energy sector, and promoting an environment more conducive to public-private partnerships across states. As of October 2025, the African Development Bank Group’s active portfolio in Nigeria consisted of 52 projects with a total value of $5.1 billion.
