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

The facility is designed to accelerate reforms in the power sector, strengthen fiscal governance, and advance the country’s clean energy transition.

The EGET-SP aligns with Nigeria’s Energy Transition Plan launched on August 24, 2022, which charts a path toward universal energy access by 2030 and carbon neutrality by 2060.

The plan aims to confront energy poverty, tackle climate change, and achieve Sustainable Development Goal Seven (SDG7).

This new loan follows an earlier $500 million approved by the bank on August 1 for the programme’s first phase.

In a statement on Wednesday, the AfDB said the second phase—covering fiscal years 2024 and 2025—will stimulate inclusive growth by fast-tracking structural energy reforms and supporting fiscal policy measures to boost non-oil revenues.

According to the bank, the programme will focus on three core pillars: Deepening fiscal policy reforms through improved public financial management, transparency, and spending efficiency. Accelerating power sector reforms to reduce energy poverty, expand electricity access, strengthen governance, and attract private investment. Driving the energy transition via policies that promote climate adaptation and mitigation, including the introduction of energy-efficiency standards for household and industrial electrical appliances.

The AfDB added that Nigeria’s nationally determined contribution (NDC) will be updated for the 2026–2030 commitment period as part of the programme.

Beneficiaries of the initiative include the Federal Ministry of Power, Federal Ministry of Finance, the Federal Inland Revenue Service (FIRS), the Office of the Auditor-General, the Debt Management Office (DMO), the National Climate Change Council (NCCC), the Federal Ministry of Environment, the Nigerian Electricity Regulatory Commission (NERC), and other social and economic policy institutions.

Private businesses across the country are also expected to benefit through an improved investment climate, enhanced opportunities in the energy sector, and a regulatory environment more conducive to public-private partnerships.

As of October 31, 2025, AfDB’s active portfolio in Nigeria consists of 52 projects valued at $5.1 billion.

Commenting on the approval, Abdul Kamara, director-general of AfDB’s Nigeria office, said the second phase of EGET-SP would build on the gains recorded under the initial phase and further strengthen Nigeria’s energy transition and fiscal stability efforts.