EGET-SP is an initiative aimed at accelerating the
transformation of the country’s electricity infrastructure and improving access
to cleaner sources of energy.

On August 24, 2022, the federal government launched
Nigeria’s energy transition plan as a major pathway in achieving universal
energy access by 2030 and a carbon-neutral economy by 2060.

The government said the plan was designed to tackle energy
poverty and the climate change crisis, as well as deliver sustainable
development goal seven (SDG7) by 2030 and net zero by 2060.

AfDB, on August 1, approved a loan of $500 million to
Nigeria to finance the first phase of the energy transition programme.

In a statement on Wednesday, AfDB said the scheme’s
policy-based operation is for fiscal years 2024 and 2025.

“The second phase of the programme aims to stimulate
inclusive growth by accelerating structural reforms in the energy sector, while
supporting progressive reforms of fiscal policy to boost non-oil revenues and
expand fiscal space,” the bank said.

According to the lender, the programme will place emphasis
on three core areas.

“First, the programme will deepen fiscal policy reforms by
strengthening public financial management systems and enhancing the
transparency and efficiency of public spending,” AfDB said.

“Second, it will accelerate the reform of the power
engineering sector to reduce energy poverty, expand access to energy, improve
sector governance, and attract private investment.

“Third, it will support implementation of the energy
transition plan through measures that promote climate change adaptation and
mitigation, including the introduction of energy-efficiency standards for
electrical appliances.”

According to the financial institution, Nigeria’s nationally
determined contribution (NDC) will also be updated for the 2026 to 2030 period.

“The programme’s direct beneficiaries are the Federal
Ministry of Power, the Federal Ministry of Finance, the Federal Inland Revenue
Service, the Office of the Auditor General, the Debt Management Office, the
National Climate Change Council of Nigeria (NCCC), the Federal Ministry of the
Environment, the Nigerian Electricity Regulatory Commission (NERC), and other
bodies responsible for social and economic policies,” the statement reads.

“Benefits will also accrue to private businesses in the form
of improved investment climate and opportunities in the energy sector at the
level of individual states of the Federation, and from the creation of an
environment more conducive to public-private partnerships.

“As of 31 October 2025, the active portfolio of the African
Development Bank Group in Nigeria comprised 52 projects with a total commitment
of $5.1 billion.”

Commenting on the development, Abdul Kamara,
director-general of the office of the AfDB in Nigeria, said the new phase will
reinforce and build on the achievements of the first phase.