AfDB Approves Fresh $500m Loan For Nigeria’s Energy Reforms
- The African Development Bank has approved a new $500 million loan to support Nigeria’s ongoing energy reforms and fiscal policy improvements
- The funding represents the second phase of the Economic Governance and Energy Transition Support Programme, covering Nigeria’s 2024–2025 fiscal years
- According to AfDB, the programme aims to strengthen public financial management, reform the energy sector, and advance Nigeria’s climate action and energy transition plan
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, tech and macroeconomic trends in Nigeria.
The African Development Bank Group has approved a fresh loan of $500 million for Nigeria to implement its energy reforms.
According to a statement issued by the bank's Communication and External Relations Department official, Alexis Adélé, on Wednesday, the loan is part of the second phase of the Economic Governance and Energy Transition Support Programme, and it covers fiscal years 2024 and 2025.
Source: Getty Images
According to the statement issued, the Economic Governance and Energy Transition Support Programme is aimed at strengthening fiscal policies, driving energy sector reforms, and promoting climate actions.
The statement further noted that the programme will target three key strategic areas to drive Nigeria’s economic and energy reforms, PUNCH reported.
The programme aims to deepen fiscal policy reforms. To achieve this, it proposes strengthening public financial management systems and enhancing the transparency and efficiency of government spending.
Another major goal of the loan is the energy sector reform, seeking to boost the power engineering sector. This is expected to reduce energy poverty, expand access to electricity, enhance sector governance, and attract greater private investment.
According to the statement, AfDB will assist Nigeria in implementing its energy transition plan, promote climate change adaptation and mitigation efforts, and introduce energy-efficiency standards for electrical appliances across the country.
The Director-General of the African Development Bank’s Nigeria Office, Abdul Kamara, said the second phase of the programme is aimed at stimulating inclusive economic growth through structural reforms.
He stressed that the bank is committed to supporting progressive fiscal policy reforms to boost non-oil revenues.
"The new phase will consolidate and build on the achievements of the first phase,” he added.
The programme will also help adjust and align Nigeria’s Nationally Determined Contribution for the 2026–2030 period with its climate commitments with global targets.
Nigerian agencies that will be directly involved in the programme include the Debt Management Office, the Office of the Auditor General, the Federal Ministries of Power, Finance, and Environment, the Federal Inland Revenue Service, the National Climate Change Council of Nigeria, and the Nigerian Electricity Regulatory Commission.
For the private sector, investors are expected to benefit from an investment-friendly climate and improve expanded opportunities in energy projects across the country. He added that the programme will enhance public-private partnership (PPP).
Source: Getty Images
AfDB launched yearly support for Nigeria's economic development
Guardian Nigeria reported that AfDB’s active portfolio in Nigeria included 52 projects with a total commitment of $5.1bn, as of 31 October 2025.
Legit.ng reported about six months ago that AfDB launched an economic support programme to give Nigeria over $60 billion in five years. The plan was contained in a strategy paper and targeted certain projects.
Former AfDB President Akinwunmi Adesina had proffered recommendations for Nigeria and other African countries on how to tackle poverty and develop their economies.
Source: Legit.ng
