By: ThinkBusiness Africa
The African Development Bank Group (AfDB) has committed $500 million to the Nigerian government, approving a crucial loan to finance the second phase of the Economic Governance and Energy Transition Support Programme. AfDB said in a statement on Wednesday.
According to AfDB the policy-based operation is designed to cover the fiscal years 2024 and 2025 and will build upon the achievements of the programme’s initial phase.
The overarching goal of the second phase is to stimulate inclusive growth in Nigeria, by fast-tracking structural reforms within the energy sector and supporting progressive fiscal policy adjustments aimed at boosting non-oil revenues to expand the nation’s fiscal space.
“The second phase of the programme aims to stimulate inclusive growth by accelerating structural reforms in the energy sector, while supporting progressive reforms of fiscal policy to boost non-oil revenues and expand fiscal space. The new phase will consolidate and build on the achievements of the first phase,” said Abdul Kamara, AfDB Group Director General in Nigeria.
Phase I, which was also a $500 million loan approved by the AfDB in August 2024, was the inaugural part of this two-year programmatic series covering the fiscal years 2024 and 2025.
One of the key fiscal reforms supported by the initial phase 1 funding is for the approval of a national tax amnesty scheme, to encourage high-net-worth individuals and informal businesses to join the tax net,and increase non-oil revenues.
On the energy side, ‘Metering Policy’ was a key action supported by the first phase; to close the massive metering gap in the Nigerian power sector.
The newly approved funding reinforces the African Development Bank Group’s significant financial engagement in Nigeria. As of 31 October 2025, the AfDB’s active portfolio in Nigeria comprised 52 projects with a total commitment of $5.1 billion.
Private businesses are also expected to gain significantly through an improved investment climate and new opportunities, particularly within the energy sector at the state level. The reforms are aimed at creating an environment more conducive to public-private partnerships PPPs.
