The government of Niger Republic has announced plans to fully nationalize the Niger Electricity Company (NIGELEC), effectively ending its status as a mixed-ownership firm.
The decision, confirmed at the June 19 Council of Ministers meeting, will see the company transfer all its capital and assets to the State, with its Board of Directors dissolved.
Minority shareholders will be compensated.
Nigelec, previously over 99% state-owned with minor stakes held by local banks, cities, and staff, had a capital base of over 76 billion FCFA ($134 million).
Despite this, the company struggled with structural deficits and weak operational performance.
Overspending and lax internal controls contributed to its persistent poor financial outlook.
With this decision, the Nigerien government aims to regain strategic control of the electricity sector, which is considered vital to national development.
Defending the nationalization move, officials said it will allow for more coherent energy policy direction and effective oversight.
Nigelec had previously undergone several reforms and privatization efforts without lasting results.
This new phase is intended to restructure governance, eliminate inefficiencies, and establish a more sustainable foundation for electricity production and distribution in Niger.
Niger’s decision to nationalize Nigelec underscores deeper challenges in its energy sector. Despite decades of partial liberalization and repeated reform attempts, the state utility remains financially weak.
Structural deficits persist despite government bailouts and investment, while internal governance has failed to enforce budget discipline.
The firm’s credibility has eroded among creditors, investors, and even customers.
Electricity access remains a major setback to economic development in Niger.
According to the World Bank, just 20% of Niger’s population had access to electricity in 2022, among the lowest rates globally.
The country, which largely depends on electricity imports from Nigeria, has experienced more frequent power cuts due to economic sanctions. Load shedding, high technical losses, and limited rural access are common.
By bringing Nigelec fully under public control, the state aims to reset the sector’s governance model.
However, the country has moved to increase its generation capacity and ensure its energy security by completing the 20MW expansion project at Gorou Banda diesel-fired plant. Plans are underway to add a further 40MW of thermal capacity at the same site.
