TLDR
- The Nigerien government has announced the full nationalization of the Niger Electricity Company (NIGELEC), ending its status as a mixed-ownership firm
- The decision, confirmed at the June 19 Council of Ministers meeting, transfers all capital and assets to the state and dissolves NIGELEC's Board of Directors
- The government aims to regain strategic control of the electricity sector, which is considered vital to national development
The Nigerien government has announced the full nationalization of the Niger Electricity Company (NIGELEC), ending its status as a mixed-ownership firm. The decision, confirmed at the June 19 Council of Ministers meeting, transfers all capital and assets to the state and dissolves NIGELEC's Board of Directors. 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. Despite this, the company struggled with structural deficits and weak operational performance. Overspending and lax internal controls contributed to persistent financial fragility.
The government aims to regain strategic control of the electricity sector, which is considered vital to national development. Officials say the nationalization 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.
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Key Takeaways
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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. Employee benefits--such as steep electricity discounts, bonuses, and gifts--have added to costs. The firm's credibility has eroded among creditors, investors, and even customers. Its chronic inefficiency is emblematic of broader public utility struggles in West Africa, where infrastructure gaps, rising demand, and weak institutions constrain delivery. Electricity access remains a major bottleneck 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. 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.
