Nigeria Bolsters Economic Reforms with Major AfDB Funding
The Federal Government of Nigeria has successfully secured a substantial $500 million loan from the African Development Bank Group during recent high-level meetings in Abidjan, Cote d'Ivoire. This significant financial injection represents the second phase of the Economic Governance and Energy Transition Support Programme, designed to strengthen Nigeria's economic framework.
Strategic Allocation and Programme Objectives
According to Abdul Kamara, Director-General of the AfDB Group's Nigeria office, this policy-based operation covering fiscal years 2024 and 2025 aims to stimulate inclusive economic growth through comprehensive structural reforms. The programme specifically targets critical areas including:
Energy sector transformation to reduce energy poverty and expand access to reliable power
Fiscal policy enhancement to boost non-oil revenues and create fiscal space
Public financial management improvements for greater transparency and spending efficiency
The initiative will also support Nigeria's energy transition plan through climate adaptation measures, including establishing energy-efficiency standards for electrical appliances nationwide.
Broad-Based Benefits and Implementation Framework
This new funding phase builds upon achievements from the first programme installment and promises widespread benefits across multiple sectors. Private businesses stand to gain from improved investment climate and enhanced opportunities in the energy sector at state levels.
The programme's direct beneficiaries include key government institutions such as:
Ministry of Power and Ministry of Finance
Federal Inland Revenue Service (FIRS)
Debt Management Office (DMO)
National Climate Change Council and Nigerian Electricity Regulatory Commission
Additionally, the programme will facilitate updating Nigeria's Nationally Determined Contribution for the 2026-2030 period, reinforcing the country's commitment to global climate agreements.
This latest disbursement completes a $1 billion budget support facility, with the first $500 million having been released last year. As of October 31, 2025, the AfDB's active portfolio in Nigeria comprises 52 projects totaling $5.1 billion in commitments, demonstrating the bank's substantial investment in Nigeria's development trajectory.
