Nigeria Secures 500 Million Dollar Boost for Power Sector and Fiscal Reforms
Sidi Ould
The African Development Bank has approved a 500 million dollar loan for Nigeria to support the second phase of its Economic Governance and Energy Transition Support Programme. The loan is designed to strengthen economic management, improve the energy sector, and help Nigeria advance its climate goals.
The bank said the funds will cover activities planned for 2024 and 2025. The programme focuses on three main areas. First, it aims to improve fiscal governance by strengthening public financial management and increasing efficiency and transparency in how government resources are used.
Second, it seeks to accelerate reforms in the power sector. This includes improving electricity infrastructure, expanding access to power, lowering energy poverty, and strengthening sector governance to attract more private investment.
The third area focuses on supporting Nigeria’s shift toward cleaner and more sustainable energy. This involves implementing national energy efficiency standards for appliances, promoting climate adaptation and mitigation efforts, and helping Nigeria meet its updated climate commitments for the 2026 to 2030 period.
According to officials, this phase of the programme builds on the progress made in the first phase. The aim is to support inclusive growth by combining structural reforms in the power sector with fiscal measures that increase non oil revenue and create more room for development spending.
Several government institutions will benefit directly from the programme, including the ministries responsible for power, finance, and the environment, as well as key agencies involved in revenue collection, debt management, auditing, and climate policy. Private investors are also expected to benefit from a more stable environment for public private partnerships and energy projects.
The African Development Bank currently supports dozens of active projects in Nigeria, and this new loan strengthens its ongoing commitment to economic reforms, a more reliable energy sector, and long term sustainable growth.