The African Development Bank (AfDB) has approved a $500 million loan to Nigeria for the second phase of its Economic Governance and Energy Transition Support Programme.
The AfDB said the facility will support fiscal reforms, energy sector improvements, and climate action across the 2024 and 2025 fiscal years.
In a statement on Wednesday, Nov. 26, AfDB spokesperson Alexis Adélé said the board approved the loan at a meeting in Abidjan, describing it as a key step to strengthen public finance and drive energy reforms.
“The policy-based operation is for fiscal years 2024 and 2025,” the statement added.
The programme targets three areas — fiscal reforms to boost transparency and efficiency, power sector reforms to expand electricity access, and climate initiatives to support Nigeria’s energy transition.
AfDB Nigeria Country Director, Abdul Kamara, said the new phase will “stimulate inclusive growth” by advancing structural reforms in the energy sector and supporting measures to raise non-oil revenues.
He added that it will build on gains recorded in the first phase.
The bank noted that government agencies such as the ministries of power, finance, and environment, as well as private sector players, are expected to benefit from the programme.
As of 31 October, AfDB’s active portfolio in Nigeria stood at $5.1 billion across 52 projects, according to the development lender.
