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African Development Bank Group President, Sidi Ould Tah, and Niger’s Prime Minister, Ali Mahamane Lamine Zeine, have signed a $144.7 million financing agreement to improve energy access and private sector competitiveness.
The agreement, signed at the institution’s headquarters in Abidjan, provides budgetary support from the African Development Fund, the Bank Group’s concessional financing window. It enables the Nigerien government to implement Phase 1 of the transformative Energy Sector Governance and Competitiveness Support Programme (PAGSEC).
“It is with great pleasure that we have just formalised this agreement, which is very important for Niger,” said the Prime Minister. “The agreement is part of our strong cooperation with the African Development Bank Group.”
The support from the African Development Fund will increase national electricity access from 22.5% to 30% by 2026, while boosting the manufacturing sector’s contribution to GDP from 2.5% to 3.8%. A key component of the project focuses on developing renewable energy capacity, with plans for 240 MW of solar power by 2030, including 50 MW by December 2026.
Prime Minister Zeine, who is also Niger’s Minister of Economy and Finance and serves as Governor of the Bank Group for his country, added: “Our Bank’s support came at an important time, and the process has now led to the establishment of this programme, which aims to support Niger’s economic competitiveness and resilience to multiple shocks through, improved access to energy, promotion of the private sector, consolidation of the fiscal framework, and better consideration of vulnerable groups within public policies.”
Beyond the energy sector, the programme will strengthen public financial management systems while enhancing tax revenue mobilisation and control systems. It will further support the clearance of domestic arrears, enhance public-private partnerships dialogue, and promote the adoption of an industrial and trade policy to bolster Niger’s private sector.
“I can assure you that the African Development Bank Group will remain, as it has always been, a strong supporter of all our regional member states in their pursuit of harmonious development and shared prosperity,” said Dr Ould Tah. “I would like to take this opportunity to congratulate the Bank’s teams for their hard work and also to thank the Board of Directors for its support for our efforts.”
Social inclusion
This high-impact programme prioritises social inclusion, and specialised support for internally displaced persons, women, and young persons. With more than 507,000 internally displaced people due to security challenges in the Sahel region, PAGSEC has outlined a social and economic inclusion programme to cushion vulnerable communities.
It will also establish high-level coordination mechanisms and update national energy policies to create a favourable environment for private-sector participation in mini-grid developments crucial for rural electrification.
With this programme, Niger is set to capitalise on its vast renewable energy potential while building governance systems that support inclusive and sustainable development.
The African Development Bank Group has said that it will continue to support Niger’s transformation through strategic investments that promote economic competitiveness, energy security and good governance.
