AfDB Approves $144 Million Loan to Boost Energy Access and Economic Growth in Niger

The African Development Bank Group (AfDB) has approved a $144.27 million loan for Niger to strengthen its energy infrastructure, expand access to electricity, and improve the country’s overall economic competitiveness.

The funding will support the first phase of the Energy Sector Governance and Competitiveness Support Programme, which is designed to reform energy legislation, enhance tax revenue collection, reduce domestic arrears, and encourage dialogue between the public and private sectors. The programme also seeks to implement policies that will support local industries and commercial activity.

Lamin Barrow, AfDB’s Director General for West Africa, emphasized the significance of the initiative in driving Niger’s economic recovery and long-term energy sustainability. “By enhancing energy access and improving governance systems, we are laying the groundwork for inclusive growth that benefits all Nigeriens, especially the most vulnerable,” he said.

The programme aims to raise electricity access from 22.5% to 30% by 2026 and increase the manufacturing sector’s share of GDP from 2.5% to 3.8%. A strong focus has been placed on renewable energy development, with plans to install 240 megawatts of solar power by 2030 — including 50 megawatts expected by 2026.

With more than 507,000 people displaced by insecurity in the Sahel region, the programme includes support measures for women, youth, and vulnerable communities. Currently, Niger has one of the lowest rural electricity access rates in West Africa, at just 4.5%.

The initiative is aligned with Niger’s national energy compact, which aims to attract $527 million in private investment by 2030 — particularly for mini-grid projects vital to expanding electricity access in rural areas.