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The Digest:

The African Development Bank has approved a $500 million policy-based loan to support Nigeria’s economic governance and energy transition goals. This second phase of financing aims to consolidate earlier reforms while powering the nation’s shift toward sustainable and inclusive growth.

Key Points:
  • The loan will fund Nigeria’s Economic Governance and Energy Transition Support Programme (Phase 2).
  • It aims to strengthen fiscal policy, public financial management, and energy sector governance.
  • Key reforms target expanding electricity access and reducing energy poverty nationwide.
  • The programme supports updating Nigeria’s Nationally Determined Contribution for 2026–2030.
  • Direct beneficiaries include the Ministry of Power, the Ministry of Finance, FIRS, and DMO.
  • Private businesses are expected to gain from improved investment climates and PPP opportunities.
  • AfDB’s active portfolio in Nigeria now includes 52 projects worth $5.1 billion.
As Nigeria navigates the complex currents of fiscal and energy reform, this infusion seeks not just to stabilize systems but to power a more sustainable and inclusive future.

Sources: Daily Trust, AfDB
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