The African Development Bank (AfDB) has approved a $500 million loan for the federal government to fund the second phase of Nigeria’s Economic Governance and Energy Transition Support Programme (EGET-SP).
The programme aims to accelerate the upgrade of Nigeria’s electricity infrastructure and expand access to cleaner, more reliable energy sources.
Nigeria launched its Energy Transition Plan on August 24, 2022, outlining pathways to achieve universal energy access by 2030 and a carbon-neutral economy by 2060. The plan targets energy poverty reduction, climate action, and the delivery of SDG 7.
This new loan follows AfDB’s approval of another $500 million on August 1 for the first phase of the transition programme.
According to AfDB, the second phase—covering fiscal years 2024 and 2025—will focus on three main areas:
1. Deepening fiscal policy reforms, including stronger public financial management, enhanced transparency, and more efficient public spending.
2. Advancing power sector reforms to reduce energy poverty, improve governance, expand access, and attract private investment.
3. Supporting implementation of Nigeria’s energy transition plan, including climate adaptation and mitigation measures such as new energy-efficiency standards for electrical appliances.
The bank added that Nigeria’s nationally determined contribution (NDC) will be updated for 2026–2030 as part of the programme.
Direct beneficiaries include the Federal Ministry of Power, Federal Ministry of Finance, FIRS, Auditor-General’s Office, Debt Management Office, NCCC, Federal Ministry of Environment, NERC, and other policy institutions. Private businesses and state governments are also expected to benefit from an improved investment climate and stronger support for public-private partnerships.
As of October 31, 2025, AfDB’s active portfolio in Nigeria consisted of 52 projects worth $5.1 billion.
Abdul Kamara, AfDB’s country director for Nigeria, said the new phase will build on the progress recorded in the first phase.