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Niger Secures $144 Million AfDB Loan to Boost Solar Capacity and Raise Electricity Access by 2026

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Representational image. Credit: Canva

The African Development Bank (AfDB) has approved a loan of $144.27 million to support Nigerโ€™s efforts to strengthen its energy sector and improve economic governance. The funding will facilitate the first phase of Nigerโ€™s Energy Sector Governance and Competitiveness Support Program, designed to tackle the countryโ€™s electricity shortage while enhancing financial and institutional frameworks.

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The program aims to increase electricity access nationwideโ€”from the current 22.5% to 30% by 2026โ€”and expand manufacturingโ€™s share of GDP from 2.5% to 3.8%. A key priority includes developing renewable energy, particularly solar, with plans to install 240 MW by 2030 and 50 MW by the end of 2026.

โ€œThis initiative reinforces our commitment to Nigerโ€™s energy transition and inclusive development,โ€ said Lamin Barrow, AfDBโ€™s Director General for West Africa. โ€œImproving energy access and governance will lay the foundation for long-term, sustainable growth.โ€

In addition to energy reforms, the program will enhance tax revenue systems, support public-private dialogue, and foster industrial policies that benefit local businesses. It will also clear domestic arrears and strengthen public financial management.

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The project includes a strong social inclusion component, with targeted support for over 507,000 internally displaced persons, women, and youth affected by regional insecurity. In rural Nigerโ€”home to 80% of the populationโ€”only 4.5% currently have electricity access, with 94% relying on biomass.

Backed by Nigerโ€™s strategic energy compact, the initiative is expected to attract $527 million in private sector investment by 2030 and accelerate rural electrification through policy updates and mini-grid development.

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