The Board of Directors of the African Development Bank (AfDB) Group made a major commitment to Nigeria by approving a US$500 million loan on November 24, 2025, in Abidjan. This financing is intended to support the second phase of the country's Governance and Energy Transition Support Program , covering the 2024 and 2025 fiscal years.

A program for greener and more inclusive growth

This multi-sectoral program aims to consolidate the progress already made by focusing on accelerating structural reforms.

“The new phase of the program aims to stimulate inclusive growth by accelerating structural reforms in the energy sector while implementing progressive fiscal policy reforms to improve non-oil revenues and expand fiscal space. This second phase will therefore consolidate and build on the achievements of the first,” explained Abdul Kamara , Director General of the AfDB office in Nigeria.

The three pillars of the intervention

The Programme is structured around three key areas of intervention to transform the Nigerian economy and energy sector:

1. Tax policy reforms and public finances:
2. Strengthening public financial management systems.
3. Improving the transparency and efficiency of public spending.
4. Accelerating the reform of the electricity sector:
5. Reduction of energy poverty and improvement of access to energy.
6. Strengthening sector governance and attracting private investment.
7. Support for the energy transition and climate:
8. Implementation of the national energy transition plan.
9. Introduction of climate change adaptation and mitigation measures, including energy efficiency standards for electrical appliances.

The program also includes updating the Nationally Determined Contribution (NDC) for the period 2026-2030.

Benefits and partners

The direct beneficiaries are several Nigerian government and regulatory entities, including the Ministries of Finance, Energy and Environment, the Federal Domestic Revenue Service, the Debt Management Office, the Nigeria Electricity Regulatory Commission (NERC) and the National Climate Change Council (NCCC).

The private sector will play a crucial role and will be a major indirect beneficiary. It will benefit from improved energy investment opportunities at the state level and the creation of a more favorable environment for increased Public-Private Partnership (PPP) transactions.

As of October 31, 2025, the AfDB Group’s active portfolio in Nigeria comprised 52 projects, representing a total commitment of $5.1 billion.