The Federal Government, yesterday, secured a fresh $500 million loan from the African Development Bank (AfDB) Group after meeting with the bank in Abidjan, Cote d’Ivoire.
The government said the loan was 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.
According to the Director-General of the Office of the AfDB Group in Nigeria, Abdul Kamara, 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 is supposed to consolidate and build on the achievements of the first.
According to him, the programme will deepen fiscal policy reforms by strengthening public financial management systems and enhancing the transparency and efficiency of public spending; accelerate the reform of the power engineering sector to reduce energy poverty, expand access to energy, improve sector governance and attract private investment; and support implementation of the energy transition plan through measures that promote climate change adaptation and mitigation, including the introduction of energy-efficiency standards for electrical appliances.
Benefits will also accrue to private businesses in the form of improved investment climate and opportunities in the energy sector at the level of individual states of the federation and from the creation of an environment more conducive to public-private partnerships (PPPs).
The Nationally Determined Contribution (NDC) will also be updated for the 2026–2030 period. The programme’s direct beneficiaries are the Ministry of Power, Ministry of Finance, Federal Inland Revenue Service (FIRS), Office of the Auditor General of the Federation (OAuGF), Debt Management Office (DMO), National Climate Change Council of Nigeria (NCCC), Ministry of the Environment, Nigerian Electricity Regulatory Commission (NERC) and other bodies responsible for social and economic policies.
As of October 31, 2025, data shows that the active portfolio of AfDB Group in Nigeria comprised 52 projects with a total commitment of $5.1 billion and counting.
Last month, the bank confirmed it would lend Nigeria $500 million before the end of the year. This is the second half of a $1 billion budget support facility aimed at helping Nigeria with its ongoing macroeconomic reforms. The first $500 million from this facility was disbursed last year.
