African Development Bank Approves $500 Million Loan to Advance Nigeria’s Fiscal Reforms and Energy Transition
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The African Development Bank Group has approved a $500 million loan to Nigeria to support the second phase of its Economic Governance and Energy Transition Support Programme, covering fiscal years 2024 and 2025. The funding targets three reform pillars: strengthening public financial management, accelerating power sector reforms, and advancing climate commitments under Nigeria’s energy transition plan.
The programme’s beneficiaries span key institutions including the Ministries of Power, Finance, and Environment; the Federal Inland Revenue Service; the Nigerian Electricity Regulatory Commission; the Debt Management Office; the Office of the Auditor-General; and the National Climate Change Council. Improved governance and clearer regulatory frameworks are expected to unlock private investment opportunities, particularly in state-led power projects and emerging public-private partnerships. As of October 31, 2025, the Bank’s active portfolio in Nigeria included 52 projects worth $5.1 billion.
The loan is central to Nigeria's efforts to diversify an economy still heavily reliant on oil revenues. Enhanced fiscal discipline and transparency are intended to stabilize public finances and bolster investor confidence. Power sector reforms aim to reduce chronic energy shortages that restrict productivity and business expansion. Integrating climate resilience and mitigation measures aligns Nigeria with global sustainability standards and positions the country to attract climate-focused capital.
By supporting fiscal stability, energy modernization, and climate reforms simultaneously, the programme is designed to strengthen Nigeria’s long-term economic resilience while expanding access to reliable and sustainable power.
