The African Development Bank Group (AfDB) has approved a $500 million loan to the Nigerian government to fund the second phase of the Economic Governance and Energy Transition Support Programme, covering fiscal years 2024 and 2025.

According to a statement, the policy-based programme aims to stimulate inclusive growth by accelerating structural reforms in Nigeria’s energy sector and supporting progressive fiscal policy reforms to enhance non-oil revenue and expand fiscal space. Abdul Kamara, Director General of AfDB’s Nigeria Office, stated that the new phase will consolidate and build on the achievements of the first phase.

The programme will focus on three main areas: deepening fiscal policy reforms through stronger public financial management and more transparent public spending; accelerating reforms in the power sector to reduce energy poverty, improve governance, expand access, and attract private investment; and supporting the implementation of Nigeria’s energy transition plan, including measures for climate adaptation and mitigation and the introduction of energy-efficiency standards for electrical appliances.

The initiative will also involve updating Nigeria’s Nationally Determined Contribution (NDC) for 2026–2030. Direct beneficiaries include the Federal Ministries of Power, Finance, and Environment, the Federal Inland Revenue Service, the Office of the Auditor General, the Debt Management Office, the National Climate Change Council, the Nigerian Electricity Regulatory Commission, and other bodies involved in social and economic policy.

Private businesses across Nigeria are expected to benefit through an improved investment climate and greater opportunities in the energy sector, as well as the promotion of public-private partnerships.

As of 31 October 2025, the AfDB had an active portfolio of 52 projects in Nigeria, totaling $5.1 billion in commitments.