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AfDB approves $500m loan to support the second phase of Nigeria’s energy transition programme.
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Focus on energy sector reforms, fiscal policy improvements, and climate adaptation for sustainable growth.
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Federal ministries and private investors to benefit from enhanced infrastructure and investment climate.
The African Development Bank (AfDB) has approved a $500 million loan to the Nigerian government to finance the second phase of the Economic Governance and Energy Transition Support Programme (EGET-SP).
The initiative aims to accelerate the transformation of Nigeria’s electricity infrastructure and improve access to cleaner energy sources, supporting the government’s goal of universal energy access by 2030 and a carbon-neutral economy by 2060.
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The AfDB said the programme will focus on three key areas: strengthening fiscal policy and public financial management, reforming the power sector to reduce energy poverty, and promoting climate change mitigation through energy-efficiency standards.
The loan will directly benefit several federal agencies, including the Ministry of Power, Ministry of Finance, Federal Inland Revenue Service, Debt Management Office, and the Nigerian Electricity Regulatory Commission (NERC). Private sector actors will also gain from an improved investment climate and opportunities for public-private partnerships.
Abdul Kamara, AfDB’s director-general in Nigeria, stated that the second phase will build on the achievements of the first phase, further supporting structural reforms and inclusive economic growth.
As of October 31, 2025, the AfDB had 52 active projects in Nigeria, with a total commitment of $5.1 billion.
