The African Development Bank Group (AfDB), has approved a new $500m loan to support Nigeria’s ongoing economic and energy reform initiatives.
The funding will back the second phase of the Economic Governance and Energy Transition Support Programme, which focuses on improving fiscal management, strengthening climate-related policies, and promoting key changes in the power sector.
According to a statement released on Wednesday by Alexis Adélé from the Bank’s Communication and External Relations Department, the approval was issued during a board meeting in Abidjan, Ivory Coast, and will cover fiscal years 2024 and 2025.
“The Board of Directors of the African Development Bank Group, meeting in Abidjan, approved a $500m loan to the Government of the Federal Republic of Nigeria to finance the second phase of the Economic Governance and Energy Transition Support Programme. The policy-based operation is for fiscal years 2024 and 2025.”
Abdul Kamara, the director-general of the Bank’s Nigeria Office, explained that this phase is designed to strengthen progress already made.
“The second phase of the programme aims to stimulate inclusive growth by accelerating structural reforms in the energy sector, while supporting progressive reforms of fiscal policy to boost non-oil revenues and expand fiscal space. The new phase will consolidate and build on the achievements of the first phase,” he said.
Key beneficiaries include the Federal Ministries of Power, Finance, and Environment, the Nigerian Electricity Regulatory Commission, and the National Climate Change Council of Nigeria.
The programme is also expected to open more opportunities for private businesses through a better investment climate and improved conditions for public-private partnerships across the states.
The statement added that, as of October 31, 2025, the Bank’s active portfolio in Nigeria consisted of 52 projects with a combined value of $5.1 billion.
