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The impact of the nationalization of the electricity sector and uranium production in Niger
(peoplesdispatch.org)
The Nigerien government has announced the nationalization of a unit of the French uranium company Orano. Its subsidiary Somaïr has been at the center of a standoff that has been ongoing since last year, when the company suspended production at the mine. The announcement was made last week on state television, citing “irresponsible, illegal and disloyal behavior” by the French company. Orano is 90% owned by the French government and has operated mines in the African country for decades.
On the same occasion, the country’s president, Abdourahamane Tchiani, announced the nationalization of the Niger Electricity Company (Nigelec SA). Created as a joint-stock company with a mixed economy, Nigelec is responsible for the production, transmission, and distribution of electricity throughout the country. Its share capital, valued at over 76 billion CFA francs, was held by the state for over 99%, with the remainder being held by several minority shareholders, including the French Development Agency.
Despite public dominance, the company remained autonomous for several decades, with attempts at privatization that never came to fruition.
According to analysts, in addition to the numbers, the lack of adequate energy supply itself motivated the action. For several years, the population of the Sahel country has been faced with recurring power cuts, due to the country’s strong energy dependence on Nigeria.
Hopefully they are able to built up their energy sector to stop their dependence on nigeria