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Niger Faces Financial Hurdles in Rural Electrification Push

Niger Faces Financial Hurdles in Rural Electrification Push
Tuesday, 07 October 2025 14:31

• Niger targets raising national electricity access from 22.5% to 30% by 2026 but faces major budget and structural constraints.
• The African Development Bank approved a $144.7 million loan to support reforms, renewables, and a 50 MW solar rollout by 2026.
• Rural electrification remains the biggest challenge, with only 12% of rural households connected compared to 70% in urban areas.

Niger plans to raise national electricity access from 22.5% to 30% by 2026, according to data released on October 4. Authorities acknowledged that financial constraints and structural weaknesses limit progress despite regulatory improvements in the power sector.

The African Development Bank (AfDB) has approved a $144.7 million loan (CFA89 billion) to strengthen governance and competitiveness in Niger’s electricity sector. The financing falls under the Energy Sector Governance and Competitiveness Support Program (PAGSEC I).

The AfDB said the program will support reforms at state utility Société Nigérienne d’Électricité (NIGELEC), modernize the grid, and deploy renewable energy. Niger expects to install 50 megawatts of solar capacity by 2026, toward a goal of 240 MW by 2030.

The World Bank estimates that only 12% of rural households have electricity access compared with nearly 70% in urban areas. This gap highlights the country’s uneven electrification, where more than eight million people remain without power.

AfDB figures show that connecting a rural household costs between $1,200 and $1,600, while an urban connection costs less than $400. The bank said current financing would cover only a fraction of new connections needed.

Niger allocates about $53 million annually to electricity subsidies, according to the country’s energy regulator ARSE. These funds keep household tariffs between CFA96-118 ($0.16–$0.20) per kWh. The regulator noted that subsidies primarily benefit already-connected urban households, widening the rural-urban divide.

Despite Niger’s solar potential of more than 5.5 kWh/m²/day—the highest in Africa, according to the World Bank—progress in deploying mini-grids remains slow. Regional programs have covered only part of rural target zones, hindered by high logistics costs and insecurity in certain regions.

This article was initially published in French by Abdel-Latif Boureima

Adapted in English by Ange Jason Quenum

 

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