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

The initiative is designed to accelerate Nigeria’s shift toward cleaner energy, strengthen electricity infrastructure, and improve access to sustainable power sources.

Nigeria launched its Energy Transition Plan on August 24, 2022, outlining a pathway to achieve universal energy access by 2030 and a carbon-neutral economy by 2060. The plan aims to confront energy poverty, address climate change, and deliver Sustainable Development Goal 7 (SDG7) by 2030.

The newly approved funding follows an earlier $500 million loan granted by AfDB in August 2022 to support the first phase of the programme. According to the Bank, the second phase—structured as a policy-based operation—covers fiscal years 2024 and 2025.

In its statement, AfDB said the new phase seeks to stimulate inclusive growth by accelerating structural reforms in the energy sector and supporting fiscal policy adjustments that strengthen non-oil revenues and expand fiscal space.

The bank identified three key focus areas:

1. Deepening fiscal policy reforms by strengthening public financial management systems and improving transparency and efficiency in public spending.
2. Accelerating power-sector reforms to reduce energy poverty, expand electricity access, enhance sector governance, and attract private investment.
3. Supporting Nigeria’s energy transition plan, including climate adaptation and mitigation measures such as introducing energy-efficiency standards for electrical appliances.

AfDB also noted that Nigeria’s Nationally Determined Contribution (NDC) will be updated for the 2026–2030 period as part of the transition plan.

The programme’s direct beneficiaries include the Federal Ministry of Power, Federal Ministry of Finance, Federal Inland Revenue Service, Office of the Auditor General, Debt Management Office, National Climate Change Council of Nigeria (NCCC), Federal Ministry of the Environment, and the Nigerian Electricity Regulatory Commission (NERC), among others.

Private businesses across Nigeria are also expected to benefit from improved investment conditions in the energy sector and a more supportive environment for public-private partnerships.

As of October 31, 2025, AfDB’s active portfolio in Nigeria included 52 projects worth $5.1 billion.

Commenting on the new approval, Abdul Kamara, Director-General of AfDB’s Nigeria office, said the second phase will consolidate and build upon the achievements recorded under the first phase of the programme.