AfDB Approves $500m Loan to Support Nigeria’s Fiscal and Energy Reforms
The African Development Bank has approved a $500 million facility for the Federal Government to implement the second phase of its Economic Governance and Energy Transition Support Programme.
The intervention is aimed at strengthening Nigeria’s fiscal framework, deepening reforms in the energy sector, and advancing the country’s climate commitments.
In a statement issued on Wednesday by Alexis Adélé of the AfDB’s Communication and External Relations Department, the bank said its Board of Directors endorsed the loan during a meeting held in Abidjan. The support package covers the 2024 and 2025 fiscal years.
According to the AfDB, the programme will prioritise three broad areas. The first is fiscal reform, which seeks to enhance public financial management, improve transparency, and ensure more efficient government spending.
The second focus area is energy sector reform, geared towards accelerating improvements in power generation and distribution, reducing energy poverty, broadening electricity access, and attracting private sector participation.
The third component centres on climate action, including support for Nigeria’s energy transition plan, promotion of climate adaptation and mitigation measures, and the introduction of energy-efficiency standards for appliances.
Abdul Kamara, Director-General of the AfDB’s Nigeria Office, said the initiative is expected to spur inclusive growth by driving structural changes in the energy sector while boosting non-oil revenue through strengthened fiscal policies. He noted that the new phase is designed to consolidate the gains recorded during the programme’s first phase.
Under the arrangement, Nigeria’s Nationally Determined Contribution for 2026–2030 will also be updated to align with global climate obligations.
Beneficiary agencies include the Ministries of Power, Finance, and Environment; the Federal Inland Revenue Service; the Nigerian Electricity Regulatory Commission; the Debt Management Office; the Office of the Auditor-General; and the National Climate Change Council.
The loan underscores the AfDB’s continued commitment to supporting Nigeria’s economic reforms, sustainable energy transition, and broader efforts to drive inclusive development.
