The Nigerien government and the African Development Bank (AfDB) have signed a loan agreement worth 105 million units of account, equivalent to over 82 billion FCFA, to finance the second phase of the Energy Sector Governance and Competitiveness Support Program. The agreement was signed on October 28, 2026, in Niamey, by the Ministry of Economy and Finance on behalf of the Nigerien government and the AfDB. This financing aims to support the country's socio-economic development.
The new loan agreement is a follow-up to the first phase, which was signed in October 2025 in Abidjan, worth approximately $144 million. The program seeks to improve access to electricity, strengthen public finance governance, and support the competitiveness of Nigerien businesses. The first phase aimed to increase the electrification rate from 22.5% to 30% of the population by the end of 2026 and boost the manufacturing industry's contribution to GDP from 2.5% to 3.8%.
The Energy Sector Governance and Competitiveness Support Program also focuses on developing renewable energy, with a target of 240 megawatts of solar power by 2030. Niger, with one of the lowest electrification rates on the continent, faces significant challenges in accessing energy, which hinders its development. The program aims to address these challenges by supporting reforms in the energy sector, improving the business climate, and enhancing public finance management.
The Nigerien government has identified energy access as a major constraint to economic growth and development. The country's low electrification rate affects its ability to attract investment, create jobs, and stimulate economic activity. The AfDB's support program aims to help address these challenges and create a more favorable business environment.
The second phase of the program will focus on implementing reforms to improve the efficiency and sustainability of the energy sector. This includes measures to enhance the management of the energy sector, improve the financial sustainability of the national electricity company, and promote private sector participation in the energy sector.
The AfDB's loan agreement with Niger is part of a broader effort to support the country's economic development and poverty reduction. The program aligns with the Nigerien government's development priorities and the AfDB's strategic objectives in the region. The agreement demonstrates the AfDB's commitment to supporting Niger's efforts to improve energy access and promote economic growth.
The implementation of the Energy Sector Governance and Competitiveness Support Program is expected to have a positive impact on Niger's economy and population. The program's success will depend on effective coordination and implementation by the Nigerien government and its partners. Key stakeholders will monitor the program's progress and make adjustments as needed to ensure its objectives are met.
Key points
- The Nigerien government and AfDB have signed a $105 million loan agreement to support energy and competitiveness development.
- The program aims to improve access to electricity, strengthen public finance governance, and support the competitiveness of Nigerien businesses.
- The agreement is part of a broader effort to support Niger's economic development and poverty reduction.
