The African Development Bank Group has announced the approval of a fresh $500m loan to the Federal Government of Nigeria to finance the second phase of the Economic Governance and Energy Transition Support Programme, aimed at strengthening fiscal policies, driving energy sector reforms, and promoting climate action.

A statement issued by the Communication and External Relations Department official, Alexis Adélé, on Wednesday said the AfDB Board of Directors approved the loan during a meeting in Abidjan and that it covers fiscal years 2024 and 2025.

The statement read, “The Board of Directors of the African Development Bank Group, meeting in Abidjan, approved a $500m loan to the Government of the Federal Republic of Nigeria to finance the second phase of the Economic Governance and Energy Transition Support Programme. The policy-based operation is for fiscal years 2024 and 2025.”

Secondly, the initiative will focus on energy sector reform, seeking to accelerate improvements in the power engineering sector. The goal is to reduce energy poverty, expand access to electricity, enhance sector governance, and attract greater private investment.

The programme also aims to advance energy transition and climate action by supporting the implementation of Nigeria’s energy transition plan. It will promote climate change adaptation and mitigation efforts and introduce energy-efficiency standards for electrical appliances across the country.