By Seun Ibiyemi
The Board of Directors of the African Development Bank (AfDB) Group has approved a $500 million loan facility for Nigeria to finance the second phase of the Federal Government’s Economic Governance and Energy Transition Support Programme.
The approval was announced by the Director-General of the AfDB’s Nigeria Country Department, Abdul Kamara, in a statement published on the bank’s website.
According to Kamara, the policy-based operation is scheduled to run across the 2024 and 2025 fiscal years. It is designed to deepen structural reforms, strengthen energy systems, and expand the fiscal space necessary for inclusive growth.
He noted that this fresh support builds significantly on the progress achieved under the first phase of the programme, with a specific focus on boosting non-oil revenues and accelerating structural reforms in the power sector.
The Bank outlined that the programme is structured around three core priorities. The first focuses on strengthening fiscal policy through improved public financial management systems to ensure greater transparency and efficiency in public spending.
The second priority targets critical reforms in the power sector aimed at reducing energy poverty, expanding electricity access, improving sector governance, and attracting private-sector investment. The third priority supports the implementation of the national energy transition plan, which includes climate adaptation measures, the rollout of energy-efficiency standards, and the updating of Nigeria’s Nationally Determined Contribution (NDC) for the 2026–2030 period.
Direct beneficiaries of the initiative include the Federal Ministries of Power and Finance, the Federal Inland Revenue Service (FIRS), the Auditor-General’s Office, the Debt Management Office (DMO), and the Nigerian Electricity Regulatory Commission (NERC), among others.
The bank noted that private businesses across the states are also expected to benefit from a strengthened investment climate and wider public–private partnership opportunities.
As of October 31, the AfDB’s active portfolio in Nigeria comprised 52 projects valued at $5.1 billion.