Niger secures $144m AfDB loan to boost energy access, economic growth

The African Development Bank Group (AfDB) has approved a $144.27 million loan to Niger to finance the first phase of an ambitious programme aimed at reforming the country’s energy sector and tackling its acute power shortage.

The Energy Sector Governance and Competitiveness Support Programme will strengthen public financial management, improve tax revenue mobilisation and control systems, and clear domestic arrears. It will also promote public-private dialogue and support the adoption of a new industrial and commercial policy to enhance the competitiveness of Nigerien businesses.

“This programme 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 laying the foundations for sustainable growth that benefits all Nigeriens, particularly the most vulnerable.”

The AfDB-backed programme aims to raise national electricity access from 22.5% to 30% by 2026, while boosting manufacturing’s share of GDP from 2.5% to 3.8%. A central pillar of the initiative is the development of renewable energy capacity, with plans to generate 240 MW of solar power by 2030, including 50 MW by December 2026.

Social inclusion is a key priority, with targeted measures for internally displaced persons (IDPs), women, and youth. Niger currently hosts over 507,000 IDPs, mostly displaced by insecurity in the Sahel region. The programme will ensure that these vulnerable groups gain access to new economic and energy opportunities.

Despite security challenges, Niger’s economy has shown resilience, with GDP growth reaching 8.8% in 2024. Oil production is also projected to rise sharply from 20,000 to 90,000 barrels per day by 2026. However, electricity access remains among the lowest in West Africa. Only 22.5% of Nigeriens are connected to the grid, and in rural areas – home to 80% of the population – access drops to just 4.5%, with biomass providing 94% of household energy needs.

The programme is anchored in Niger’s strategic energy compact, which seeks to attract $527 million in private sector investment by 2030. It will also set up high-level coordination mechanisms and update national energy policies to foster private participation in mini-grid and rural electrification projects.

By leveraging its vast renewable energy resources, the initiative aims to position Niger for inclusive and sustainable development, while reducing dependence on traditional biomass and advancing energy independence.