Niger Government Takes Full Ownership Of Electricity Company To Improve Electricity Management, Expand Access

Niger‘s government has announced that it is taking full ownership of the Niger Electricity Company (NIGELEC), which handles the country’s electricity production, transmission, and distribution. The decision was made during a Council of Ministers meeting and is meant to give the government better control over how electricity is managed in the country.

NIGELEC was already mostly owned by the state, with more than 99 per cent of its capital. Other small shareholders included company staff, local banks, and international partners. However, the company has struggled with serious financial problems for years. Government officials say the company continued giving its staff exorbitant benefits, including 90 per cent discounts on their electricity bills, bonuses, and special advance payments, while undermining its credibility with its creditors, investors, and customers.

As part of the new plan, the government will take over all shares and assets of the company. Those who currently own shares will be paid compensation. The company’s board of directors has also been dissolved. The government says this change will allow better management of the electricity sector and help address the power supply problems facing the country.

Niger has been dealing with regular power cuts and depends heavily on electricity imported from other countries. But the country has also made efforts in recent years to improve its electricity system.

In 2023, a large solar power plant was launched at Gorou Banda to offset supply disruptions after Nigeria completely cut off electricity supply to Niger. This plant, which includes more than 55,000 solar panels, has helped improve power supply in cities like Niamey, Dosso, and Tillabéri.

Niger also built solar mini-grids in rural areas with help from the World Bank. These small grids now bring electricity to remote communities, schools, health centres, and homes. In some towns, access to electricity has increased from 20 per cent to 75 per cent.

Other projects are still in progress. The country is working on more solar farms, including one in Maradi and Zinder. Algeria is also helping to build a 40-megawatt hybrid power plant in Niger, and the Kandadji Dam, once completed, will provide over 100 megawatts of hydropower for the country.

By fully taking over NIGELEC, the Nigerien government hopes to manage electricity better, finish important energy projects faster, and give more people access to power.

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