The African Development Bank (AfDB) Group’s Board of Directors has approved a $144.27 million loan to support Niger’s efforts to overhaul its energy sector and tackle the country’s chronic electricity shortages.
The financing will back the first phase of the Energy Sector Governance and Competitiveness Support Program, a government-led initiative aimed at strengthening energy access, improving public financial management, and promoting private sector engagement. The program seeks to raise electricity access from 22.5% to 30% by 2026 and boost manufacturing’s contribution to GDP from 2.5% to 3.8%.
“This program represents our commitment to supporting Niger’s economic recovery and energy independence,” said Lamin Barrow, AfDB’s Director General for West Africa. “By improving access to energy and strengthening governance frameworks, we are helping to lay the foundations for sustainable growth that will benefit all Nigeriens, particularly the most vulnerable populations.”
A major focus of the program is improving governance by reinforcing tax revenue systems, managing domestic arrears, and establishing frameworks for public-private dialogue. It also includes targeted interventions for displaced persons, women, and youth, aiming to ensure that economic gains are broadly shared.
Niger faces one of the lowest electricity access rates in West Africa. Just 4.5% of the rural population, where 80% of Nigeriens live, has access to electricity, with most households depending on biomass for 94% of energy needs. The AfDB-backed program aims to reverse this trend by expanding renewable energy, with a target of 240 MW of solar capacity by 2030, including 50 MW by December 2026.
The loan aligns with Niger’s national energy compact, which aims to attract $527 million in private investment over the next five years. The program will update energy policies, establish coordination mechanisms, and create an enabling environment for rural electrification through mini-grids and off-grid solutions.
Despite ongoing security and infrastructure challenges, Niger’s economy posted a robust 8.8% GDP growth in 2024, supported by increased oil production projected to reach 90,000 barrels per day by 2026. The AfDB’s support is expected to help translate this macroeconomic resilience into more inclusive and sustainable development.
