Niamey: The Board of Directors of the African Development Bank Group has approved a loan of $144.27 million to Niger for the initial phase of a program aimed at reforming energy sector laws and addressing the country’s significant power shortage. This initiative, known as Niger’s Energy Sector Governance and Competitiveness Support Program, is designed to tackle governance challenges by enhancing public financial management systems, with a focus on improving tax revenue mobilization and control systems. Additionally, the program will support the clearance of domestic arrears, foster public-private dialogue, and promote an industrial and commercial policy to strengthen local businesses.
According to African Press Organization, African Development Bank Director General for West Africa, Lamin Barrow, emphasized the program’s importance in supporting Niger’s economic recovery and energy independence. By enhancing access to energy and reinforcing governance frameworks, the initiative aims to lay the groundwork for sustainable growth that will benefit all citizens, particularly the most vulnerable populations.
Despite facing challenges, Niger’s economy has demonstrated resilience, with GDP growth projected to reach 8.8% in 2024. Oil production is also expected to rise significantly from 20,000 to 90,000 barrels per day by 2026. However, only 22.5% of the population currently has access to electricity, one of the lowest rates in West Africa. In rural areas, where 80% of the population resides, a mere 4.5% have electricity access, forcing families to rely heavily on biomass for their energy needs.
Niger’s strategic energy compact, officially adopted by decree, aims 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 a conducive environment for private participation in mini-grid developments, crucial for rural electrification.
The program positions Niger to leverage its renewable energy potential while building governance systems that support inclusive and sustainable development.