The African Development Bank Group has approved a loan of $144.27 million to the Republic of Niger for the first phase of a program aimed at reforming energy sector laws and addressing the country’s critical power shortage.
The West African nation is implementing an Energy Sector Governance and Competitiveness Support Program to address governance challenges by strengthening public financial management systems, particularly tax revenue mobilization and control.
The program will also support the clearance of domestic arrears, public-private dialogue, and the adoption of an industrial and commercial policy to bolster support for Nigerien businesses.
The Bank’s support will underpin ambitious energy objectives, including increasing national electricity access from 22.5% to 30% by 2026, while boosting manufacturing’s contribution to GDP from 2.5% to 3.8%.
A key component focuses on the renewable energy capacity development framework and includes plans to generate 240 MW of solar energy by 2030, with 50 MW coming online before December 2026. The program particularly emphasizes social inclusion, with specific measures to support internally displaced persons, women, and youth.
With over 507,000 internally displaced persons nationwide due to security challenges in the Sahel region, targeted interventions will ensure that vulnerable populations benefit from improved economic opportunities.
Despite challenges, the Nigerien economy has shown remarkable resilience, with GDP growth climbing to 8.8% in 2024, and oil production expected to increase from 20,000 to 90,000 barrels per day by 2026.
However, only 22.5% of the population enjoys access to electricity, one of the lowest rates in West Africa.
In rural areas, where 80% of Nigeriens live, only 4.5% have access to electricity, forcing families to rely on biomass for 94% of their energy needs.
Niger’s strategic energy compact, formally adopted by decree, provides a framework to attract $527 million in private sector investment by 2030.
The project will establish high-level coordination mechanisms and update national energy policies to create an enabling environment for private participation in mini-grid developments crucial for rural electrification.
“This program represents our commitment to supporting Niger’s economic recovery and energy independence,” said Lamin Barrow, African Development Bank 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.”
Source: https://energynewsafrica.com
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