The Federal Government has secured a fresh $500 million loan from the African Development Bank (AfDB) to support major economic and energy-sector reforms.
The agreement was sealed on Wednesday, November 26 during a high-level meeting between Nigerian officials and AfDB executives in Abidjan, Côte d’Ivoire.
According to the Director-General of the AfDB Group in Nigeria, Abdul Kamara, the funding is for the second phase of the Economic Governance and Energy Transition Support Programme, covering fiscal years 2024 and 2025.
Kamara said the new loan aims to stimulate inclusive growth, accelerate structural reforms in the energy sector, and strengthen public financial management. It is also designed to boost non-oil revenue and create more fiscal space for government spending.
The second phase will build on earlier gains, especially in fiscal transparency, power-sector governance and climate-action measures.
He explained that the new programme will:
Deepen fiscal policy reforms by improving public financial management
Enhance transparency and efficiency in government spending
Accelerate power-sector reforms to reduce energy poverty and improve access
Attract more private investment into the energy value chain
Support Nigeria’s energy-transition plan with climate-adaptation and mitigation policies
Introduce energy-efficiency standards for household electrical appliances
Kamara noted that the programme will also benefit private businesses through a better investment climate and more opportunities in the energy sector. State governments are also expected to enjoy new openings for public-private partnerships (PPPs).
Nigeria’s Nationally Determined Contribution (NDC) under the Paris Agreement will be updated for the 2026–2030 period as part of the reforms.
Direct beneficiaries of the programme include the Ministry of Power, Ministry of Finance, FIRS, Office of the Auditor-General of the Federation, DMO, National Climate Change Council, Ministry of Environment, NERC, and several other socio-economic regulatory bodies.
As of October 31, 2025, AfDB data shows that Nigeria’s active loan portfolio contains 52 projects worth $5.1 billion.
This new $500 million disbursement represents the second half of a $1 billion budget support facility the AfDB promised to Nigeria. The bank released the first $500 million last year to help cushion the impact of ongoing macroeconomic reforms.