AfDB approves $500m loan to boost Nigeria’s energy transition programme

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

The initiative aims to accelerate the transformation of Nigeria’s electricity infrastructure and expand access to cleaner energy.

Launched in August 2022, Nigeria’s energy transition plan seeks to achieve universal energy access by 2030 and a carbon-neutral economy by 2060, while addressing energy poverty, climate change, and Sustainable Development Goal 7 (SDG7).

The AfDB said the policy-based programme for 2024 and 2025 will focus on three main areas: deepening fiscal reforms to improve public financial management, reforming the power sector to reduce energy poverty and attract private investment, and supporting the energy transition through climate adaptation measures and energy-efficiency standards.

Key beneficiaries include the Federal Ministries of Power, Finance, and Environment, the Federal Inland Revenue Service, the Nigerian Electricity Regulatory Commission, and other agencies overseeing economic and social policies.

Private businesses are also expected to benefit from an improved investment climate and opportunities for public-private partnerships.

As of October 31, 2025, the AfDB’s active portfolio in Nigeria included 52 projects with a total commitment of $5.1 billion.

Abdul Kamara, Director-General of the AfDB office in Nigeria, said the second phase will build on the successes of the first phase, which was also financed with a $500 million loan.