The Board of Directors of the African Development Bank (AfDB) Group has approved a 500 million dollars loan to Nigeria.

The loan is to enable the Federal Government to finance the second phase of its Economic Governance and Energy Transition Support Programme.

Abdul Kamara, Director-General, Nigeria Country Department of the AfDB, said this in a statement on the bank’s website.

According to Kamara, the policy-based operation will run across fiscal years 2024 and 2025 and is designed to deepen structural reforms, strengthen energy systems, and expand fiscal space for inclusive growth.

He said the fresh support built on progress achieved under the first phase of the programme.

“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,” he said.

According to the Bank, the programme is structured around three key priorities.

“The first focuses on strengthening fiscal policy through improved public financial management systems and ensuring greater transparency and efficiency in public spending.

“The second priority targets reforms in Nigeria’s power sector to reduce energy poverty, expand electricity access, improve sector governance and attract increased private-sector investment.

“The third area will support the implementation of the national energy transition plan, including climate adaptation and mitigation measures, and the rollout of energy-efficiency standards for appliances.

“Nigeria’s Nationally Determined Contribution (NDC) is also expected to be updated for the 2026 to 2030 period,” he said.

Direct beneficiaries of the programme include the Federal Ministry of Power, Federal Ministry of Finance, Federal Inland Revenue Service and Auditor-General’s Office.

Debt Management Office, National Climate Change Council, Ministry of Environment, Nigerian Electricity Regulatory Commission, and other policymaking institutions are included among the beneficiaries.

Private businesses across the states are also expected to benefit from a strengthened investment climate, improved energy sector governance, and wider public–private partnership opportunities.

As of Oct. 31, the AfDB’s active portfolio in Nigeria comprised 52 projects valued at 5.1 billion dollars.