The African Development Bank (AfDB) Group has approved a fresh $500 million loan for the Federal Government of Nigeria to implement Phase Two of the Economic Governance and Energy Transition Support Programme (EGET-SP).
The programme aims to accelerate improvements in Nigeria’s power infrastructure while promoting access to cleaner and more reliable energy sources.
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Nigeria launched its Energy Transition Plan (ETP) on August 24, 2022, outlining strategies to achieve universal energy access by 2030 and reach carbon neutrality by 2060. The plan addresses energy poverty and climate change, aligning with SDG 7 and the nation’s net-zero ambitions.
This latest approval follows an earlier $500 million AfDB loan granted on August 1 for Phase One of the programme, covering fiscal years 2024 and 2025.
In a statement issued Wednesday, the AfDB said the second phase aims to advance inclusive growth through energy-sector reforms and strengthened fiscal governance.
Key focus areas of EGET-SP Phase Two:
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Strengthening fiscal policy reforms: Enhancing public financial management, transparency, and efficiency in government spending.
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Accelerating power sector reforms: Reducing energy poverty, expanding electricity access, improving sector governance, and attracting private investment.
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Supporting Nigeria’s energy transition: Implementing climate adaptation and mitigation measures, including new energy-efficiency standards for electrical appliances.
The Bank added that Nigeria’s Nationally Determined Contribution (NDC) will be updated for the 2026–2030 period under the programme.
Beneficiaries of the programme include:
Federal Ministry of Power, Federal Ministry of Finance, FIRS, Office of the Auditor General, DMO, NCCC, NERC, and other socio-economic policy agencies.
Private businesses are also expected to benefit from an improved investment climate and expanded energy-sector opportunities, while states could attract more public-private partnerships.
As of October 31, 2025, the AfDB’s active portfolio in Nigeria comprised 52 projects valued at $5.1 billion.
Commenting on the new approval, Abdul Kamara, AfDB’s Director-General for Nigeria, said Phase Two will build on the achievements of the initial stage and further strengthen reforms across critical sectors.
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