₦airaland Forum

The African Development Bank Group has approved a new $500 million loan for the Federal Government of Nigeria, pushing the Bank’s total active financial commitment to the country to $5.1 billion as of October 31, 2025.

The fresh facility will finance the second phase of the Economic Governance and Energy Transition Support Programme, designed to strengthen fiscal management, accelerate energy-sector reforms, and advance Nigeria’s climate goals.


In a statement issued by Alexis Adélé of the AfDB’s Communication and External Relations Department, the Bank confirmed that its Board of Directors endorsed the loan during a meeting in Abidjan.

The operation will cover fiscal years 2024 and 2025, deepening reforms initiated in the first phase of the programme.

The initiative focuses on three core strategic pillars.

First, it seeks to deepen fiscal policy reforms by strengthening public financial management systems, improving transparency, and enhancing the efficiency of government spending.

Secondly, it aims to drive energy sector transformation, with emphasis on accelerating improvements in the power engineering space. The objective is to reduce energy poverty, expand electricity access, improve sector governance, and attract increased private-sector investment.

The programme will also support Nigeria’s energy transition and climate action efforts by advancing the implementation of the country’s Energy Transition Plan. It includes measures to promote climate change adaptation and mitigation, as well as the introduction of energy-efficiency standards for electrical appliances nationwide.

Speaking on the approval, the AfDB’s Director-General for Nigeria, Abdul Kamara, said the second phase is expected to stimulate inclusive growth by fast-tracking structural reforms in the energy sector while reinforcing progressive fiscal policies aimed at boosting non-oil revenues and expanding fiscal space.

He noted that the new phase builds on the gains recorded in the initial phase of the programme.

Additionally, the initiative will support the update of Nigeria’s Nationally Determined Contribution (NDC) for the 2026–2030 period to align the nation’s climate commitments with global targets.

Key government institutions set to benefit include the Federal Ministries of Power, Finance and Environment, the Federal Inland Revenue Service, the Nigerian Electricity Regulatory Commission, the Debt Management Office, the Office of the Auditor-General, and the National Climate Change Council of Nigeria.

The private sector is also expected to benefit through an improved investment climate and expanded opportunities for energy projects and public-private partnerships across the country.

With a portfolio of 52 active projects amounting to $5.1 billion, the newly approved loan reinforces the AfDB’s long-standing commitment to Nigeria’s economic governance reforms, sustainable energy transition, and pursuit of a more resilient and inclusive economy.

Previous loans to Nigeria

Nigeria is one of the biggest shareholders of AfDB and the bank has supported Nigeria through several interventions.

It would be recalled that in July, the AfDB announced the disbursement of $500m (N766.7bn) to Nigeria to advance critical power sector reforms.

Also in May, the bank approved a new five-year strategy for Nigeria that will provide about $650 million annually between 2025 and 2030.

Source: https://dailytrust.com/afdbs-loan-to-nigeria-hits-5-1bn

Borrowing to defend the Naira. Currencies are defended by local production and export but in our case, local production is in ICU and we are importing to keep up.

CodeTemplarr:
Borrowing to defend the Naira. Currencies are defended by local production and export but in our case, loval production is in ICU and we are importing to keep up.

They are borrowing for their spend-drift lifestyles.




Shout-out to Chess players on nairaland earning with the game.

CodeTemplarr:
Borrowing to defend the Naira. Currencies are defended by local production and export but in our case, local production is in ICU and we are importing to keep up.

how will the CEO bullion vans manufacturering company Lagos State fill the newly manufactured bullion vans if there's no borrowing

Which is billiom again na?

OBJ, GEJ didn't try quarter of this when Tinubu was critizing them. He's the most useless president in the history of Nigeria.

Borrowing the future of hellinus
He has a lot of debt to pay from his monthly BMC Stipend.

That's why Tinubu has not slept for 3 weeks now. He is thinking of the next loan to collect

I don't know which condition Nigeria will be in, if Jagaban isn't the President.

Tinunu is tirelessly working to make Nigeria great.

Tinubu and buhari families will pay for it

Tinubu's destiny is to bankrupt the poverty capital of the world

Create more insecurity and unemployment for his teeming supporters

Zulum:
I don't know which condition Nigeria will be in, if Jagaban isn't the President.

Tinunu is tirelessly working to make Nigeria great.

Tirelessly by borrowing money and doing nothing with it

Continue, what goes around comes around

The FG are usually fast to talk about not owing IMF..

Abeg una don use mistake view wetin Dem dey owe world bank..?

Ur heart go cut

CodeTemplarr:
Borrowing to defend the Naira. Currencies are defended by local production and export but in our case, local production is in ICU and we are importing to keep up.

See mumu, is the loan meant to defend our currency?

I want to believe that you can read better except for your mischievousness.

What is the Nigerian government doing with all these monies?

Are you kidding me working tirelessly to enrich his family and cohorts 😂

victorVIC1:
What is the Nigerian government doing with all these monies?

they are using it to fill in the newly manufactured bullion vans against 2027

This is a welcome development.

All foreign loans should stop.
It appears as if there are a few people in the federal government, and the lending institution who get commissions from these loans.
When the federal government takes external loans, they indirectly take money from the general Nigerian population through naira devaluation, multiple/increased taxation, and excessive inflation.

Zulum:
I don't know which condition Nigeria will be in, if Jagaban isn't the President.

Tinunu is tirelessly working to make Nigeria great.

you are Zulu then zuzuwe.so the most useless president is working according to you

allen113:
Which is billiom again na?

E mean sey the money heavy pass Billion, anything wey don pass Billion na Billiom oh my brother

What are all these loans for exactly?
I read through the article and I didn't see any meaningful thing the loan is tied to
But zombies swore that APC will not take any loan except its tied to infrastructure projects that are self-sustaining
Are these zombies not unfortunate like this?

THE AFDB $5 BILLION LOAN IS INTACT

1. SEYI HAS $2 BILLION IS HIS ACCOUN IN FRANCE
2. WALE HAS 1,2 BILLION IN MALTA BANK ACCOUNT
3. CHAGOURY HAS $2 BILLION IN FRANCE
4. REMI HAS THE BALANCE IN HER ACCOUNTS IN UAE

AFDB SHOULD GARNISH THESE ACCOUNTS TO RECOVER THEIR MONIES .... AND LEAVE HAPLESS NIGERIANS ALONE

Na real billioms... 😂

By the time Our generations generations generations generations come we won't have finished paying

If we were seeing what the money was being used for down to the grassroots that would have been satisfying

The AfDB and Nigeria have been working closely together.

Good to see the collaboration yielding more fruits

Woaw our president is really trying oooo

CodeTemplarr:
Borrowing to defend the Naira. Currencies are defended by local production and export but in our case, local production is in ICU and we are importing to keep up.

Is that What the Purpose of the Loan for Or
Just your Wild Imagination.?
Besides, Before A Loan Facilities of Such Magnitude ( Dollarised Loan Facilities) Can Be Approved- Intercontinental Wise,There Are Rules and Nigeria Positions of Repaying Such Facilities Must Be Clear and Straight!
What NIGERIANS wants to know is:
• Would These Dollars Loan Facilities Be Used For It's Stated Purpose?
• Who Will Constantly Check On Govt-to know that These Loans Facilities,will Not Be Diverted Somewhere Else?
• When do We( Nigeria) Get Feedbacks Of The Success of These Facilities?
• Which Depts( CBN and Who) - Will Be Directly In Charge of this Dollar Loan Facilities -
-to Monitor from time to time that it achieved the Real Objective and Corruption is not swept it away?
-For example - during Past Govt- till today Dollars Loans - Collected For NEPA/ DISCOS went into Voicemail in Nigeria!
• Who Are The People- that Will Be Accountable For The Success of the Implementation of the loans to achieve what the Original Purpose is meant For?

Loan is for power generation, which happens because

1.Most nigerians are not paying for power
2.Most nigerians are stealing power
3.AT best, less than 20% of consumers pay for power at say market tarrif

Above means the sector does not earn enough profit, meaning that at the end of the day, the sector is too broke to get fresh investment...so government gets a loan, which is very scanty by the way...for the needs it is supposed to meet.

To expand electricity access and generation, we need at least ten billion dollars annually...this one is five billion over two years.

If you are not paying your power bills, or bypassing the meter, you are part of the problem, rich or poor. If you are opposed to cost reflective tarrifs because we are all poor, then no one else will pay for 24 hour power, and as such we will get scanty power for scanty pay.

Remember our budget is 30 trillion naira without stealing or corruption. If the budget was 150-200 trillion naira annually, we would have been able to pay for improvements without stress. But because tinubu and apc are running an economy based on a limited amount of oil and not fighting corruption, and paying subisides that have not worked at all in four decades, here we are.

CodeTemplarr:
Borrowing to defend the Naira. Currencies are defended by local production and export but in our case, local production is in ICU and we are importing to keep up.

There's enough in the foreign reserves to cover at least 8 months worth of import. 4 months is the minimum. The government has more than enough in the foreign reserves.

In addition, at the present exchange rate, the Niara is quite weak. A weak currency reduces the demand for imports as it makes it dearer, while it makes locally produced cheaper, as they are now more competitive..

The government has zero need to borrow dollars to defend the Naira. The Naira flotation has already done justice to that.

In additon, Nigeria's non-oil exports are growing. Search: Are Nigeria's non-oil exports growing?

Good one. This will help to stabilize the economy.

CodeTemplarr:
Borrowing to defend the Naira.

Currencies are defended by local production and export but in our case, local production is in ICU and we are importing to keep up.

This is how Tinubu demonstrates that he is not clueless like PDP presidents who borrowed less money and didn’t save $84 billion from subsidy removal.

grandstar:
There's enough in the foreign reserves to cover at least 8 months worth of import. 4 months is the minimum. The government has more than enough in the foreign reserves.

In addition, at the present exchange rate, the Niara is quite weak. A weak currency reduces the demand for imports as it makes it dearer, while it makes locally produced cheaper, as they are now more competitive..

The government has zero need to borrow dollars to defend the Naira. The Naira flotation has already done justice to that.

In additon, Nigeria's non-oil exports are growing. Search: Are Nigeria's non-oil exports growing?

So why is APC’s Tinubu borrowing dollars from everyone in spite of what you wrote above?

Do you think that he is stealing the money to buy votes and make himself life president like Biya in Cameroon