AfDB Approves $500m Loan for Nigeria Energy Programme

The African Development Bank (AfDB) Group has approved a $500 million loan to the Nigerian Government to support the second phase of its Economic Governance and Energy Transition Support Programme (EGET-SP).

EGET-SP aims to upgrade Nigeria’s electricity infrastructure and expand access to cleaner energy sources. Nigeria’s energy transition plan, unveiled on 24 August 2022, seeks to achieve universal energy access by 2030 and a carbon-neutral economy by 2060, while tackling energy poverty and advancing Sustainable Development Goal 7 (SDG7).

AfDB had previously approved a $500 million loan for the programme’s first phase on 1 August. The second-phase loan covers fiscal years 2024 and 2025.

According to AfDB, the programme focuses on three main areas:

Fiscal policy reform – strengthening public financial management and improving transparency and efficiency in government spending.
Power sector reform – reducing energy poverty, improving governance, attracting private investment, and expanding access to electricity.
Energy transition implementation – supporting climate change adaptation and mitigation, including introducing energy-efficiency standards for electrical appliances.

The programme will also update Nigeria’s nationally determined contribution (NDC) for 2026–2030.

Direct beneficiaries include the Federal Ministries of Power, Finance, and Environment, the Federal Inland Revenue Service, the Auditor-General’s Office, the Debt Management Office, the National Climate Change Council, the Nigerian Electricity Regulatory Commission, and other agencies involved in economic and social policy.

Private-sector players will benefit from an improved investment climate, more opportunities in the energy sector across states, and a stronger environment for public-private partnerships.

As of 31 October 2025, AfDB’s active portfolio in Nigeria comprised 52 projects valued at $5.1 billion. Abdul Kamara, AfDB’s director-general in Nigeria, stated that the second phase will build on the progress achieved in the first phase.

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