AfDB Green-lights; $500 Million Loan to Drive Nigeria’s Economic and Energy Reforms
The African Development Bank Group (AfDB) has approved a US $500 million loan for the Federal Government of Nigeria to fund the second phase of the Economic Governance and Energy Transition Support Programme (EGET-SP), covering fiscal years 2024 and 2025.
This new funding round is designed to deepen structural reforms across three key pillars.
- To strengthen public financial management, boosting non-oil revenues and widening Nigeria’s fiscal space.
- To accelerate overhauls in the power sector reducing energy poverty, improving access to electricity, enhancing governance, and attracting private investment.
- The loan supports the country’s energy transition strategy by promoting climate-smart policies including the adoption of energy-efficiency standards for appliances and updating Nigeria’s emission reduction commitments (NDC) for 2026–2030.
Beneficiaries of the programme include major government agencies such as the Ministries of Power and Finance, the Federal Inland Revenue Service, the Debt Management Office, and regulatory/environmental bodies as well as private businesses and subnational governments. The reforms are expected to improve the investment climate, stimulate public-private partnerships, and create an enabling environment for energy-sector development across Nigeria.
With this funding, AfDB’s active portfolio in Nigeria now comprises 52 projects with a total commitment of about US $5.1 billion, underscoring the Bank’s long-term support for Nigeria’s economic transformation and sustainable development efforts.
This loan represents a critical step toward fiscal stability, improved energy access, and a greener, more inclusive economic future for Nigeria.
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