By Ebi Kesiena
The African Development Bank Group (AfDB) has approved a $500 million loan for Nigeria to support the second phase of the Economic Governance and Energy Transition Support Programme, a major policy-based initiative spanning fiscal years 2024 and 2025.
In a statement issued by the Bank, the facility is designed to deepen Nigeria’s ongoing economic reforms, strengthen public financial management, and accelerate the country’s transition toward cleaner, more sustainable energy sources.
The programme builds on the milestones achieved under its first phase, with AfDB saying the renewed support reflects confidence in Nigeria’s reform direction.
Abdul Kamara, Director General of the AfDB Group’s Nigeria Country Department, said the second phase is targeted at boosting inclusive growth by driving structural reforms that will unlock greater revenue, improve accountability, and ensure a more robust energy sector.
“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,” Kamara noted.
The programme’s direct beneficiaries are the Federal Ministry of Power, the Federal Ministry of Finance, the Federal Inland Revenue Service, the Office of the Auditor General, the Debt Management Office, the National Climate Change Council of Nigeria (NCCC), the Federal Ministry of the Environment, the Nigerian Electricity Regulatory Commission (NERC), and other bodies responsible for social and economic policies.
Meanwhile, benefits will also accrue to private businesses in the form of improved investment climate and opportunities in the energy sector at the level of individual states of the Federation, and from the creation of an environment more conducive to public-private partnerships.
