Niger's natural resources
Niger is a country endowed with significant natural resources, particularly uranium, coal, and oil. Uranium mining is a crucial sector for the national economy, with Niger being one of the world's leading suppliers, contributing approximately 5% of global output. The country has also begun exploring its oil deposits, although this sector remains largely undeveloped, with most petroleum being imported. Energy production in Niger is heavily reliant on domestic wood and predominantly controlled by government entities, including the Société Nigérienne d'Électricité (NIGELEC) and the Société Nigérienne de Distribution des Produits Pétroliers (SONIDEP).
In the 2010s, Niger implemented privatization initiatives for its energy sector, aiming to enhance efficiency, though these efforts have encountered challenges leading to inconsistent power supply. The country has initiated various renewable energy and conservation programs to address environmental concerns stemming from traditional energy sources such as wood, which has contributed to deforestation and desertification. With the backdrop of a growing population and economic pressures, the government has actively pursued renewable energy solutions, including hydroelectric projects and solar energy initiatives, to promote sustainability and reduce reliance on non-renewable resources. Niger's ongoing political instability has, however, posed challenges to these developments and the overall management of its natural resources.
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Niger's natural resources
Official Name: Republic of Niger.
Summary: Niger is rich in natural resources such as uranium and coal but relies heavily on imported oil and domestic wood for energy production. The privatization of government-owned energy corporations and renewable energy and conservation programs was implemented in the 2010s.
Niger’s natural resources include uranium, coal, and oil, although the latter is largely undeveloped and most petroleum is imported. Uranium mining is a major export industry. Wood is a major source of domestic energy consumption in rural areas. Most of Niger’s energy infrastructure is controlled by the national government, including the Société Nigérienne d’Électricité (NIGELEC), which supplies electricity, and the Société Nigérienne de Distribution des Produits Pétroliers (SONIDEP), which controls petroleum distribution. The private corporation Société Nigérienne du Charbon (SONICHAR) powers the national mines. A privatization program begun in the late 1990s was implemented in 2013, but had failed to achieve its goals as of the early 2020s. Niger’s poor economy, growing population, and increased environmental concerns have strained its traditional energy resources, leading to the development of conservation and renewable energy programs.
Uranium
Niger is home to one of the leading global deposits of uranium, and uranium mining and exportation represent a key portion of the national economy. The Ministry of Mines and Energy oversees both uranium mining and energy production. Niger’s two national mining companies are the Mining Company of Akouta (COMINAK) and the Air Mines Company (SOMAIR). AREVA, a French nuclear power company, owns controlling shares in both companies. The year 2007 witnessed a rise in the number of government mineral exploration licenses awarded to international corporations, sparked by rising uranium prices. By the 2020s, Niger was supplying about 5 percent of the world's uranium. However, in July 2023, a military coup deposed the nation's government. The coup leaders revoked the permits at the country's two largest uranium mines.
Niger has oil deposits, but this potential energy source has yet to be fully explored or utilized. SONIDEP controls all petroleum product imports. China National Petroleum Corporation (CNPC) is developing the Agadem oil deposit north of Lake Chad, formerly explored by ExxonMobil and Petronas. CNPC is constructing a refinery in the area. Political instability and violence have periodically disrupted Niger’s mining and oil exploration.
Electricity
NIGELEC provides the production, transmission, and distribution of electricity in Niger. It is a limited company in which the national government is the majority owner. The company purchases almost all of its electricity, as well as hydroelectric power and solar installations, from the National Electric Power Authority (NEPA) in Nigeria. The electricity is supplied through a 132-kilovolt interconnection constructed in 1976. NIGELEC’s power plants include Niamey I and Niamey II, the Malbaza Power Station, and the Zinder and Maradi Thermal Power Station. SONICHAR, a limited corporation established in 1975, also produces electricity. SONICHAR operates coal mines to provide the source for its energy production and powers the two national uranium mines as well as a few nearby towns. It also sells electricity to NIGELEC. Niger joined the West African Power Pool Agreement (WAPP) in 2000.
The Niger government began a privatization program in the late 1990s, with the support of the World Bank and the United Nations Development Programme, in an effort to revitalize private-sector development. Planned government divestment targets included NIGELEC and SONIDEP. The Cellule de Coordination du Programme de Privatization (CCCP) and the Inter-Ministerial Committee for Privatization oversee the program. Legislative changes have included revisions to the investment code in 1997 and 2000, revisions to the petroleum code in 1992 and 2007, and revisions to the mining code in 1993. The privatization plan was put into effect in 2013 when the state-run energy company was broken up and sold to private investors. However, a decade after the sale, Niger remained plagued by inconsistent power supply and frequent outages. In 2024, only nine of the nation's twenty-three gas-run power stations were in operation at full capacity.
Environmental Damage
In 1989, Niger began a major national effort to reform the wood industry with the implementation of its Domestic Energy Strategy (DES) for forest resource planning. The use of wood as a primary domestic energy source has resulted in deforestation, desertification, and other environmental damage, as well as the development of a lucrative and often exploitative wood-gathering and distribution market in forest regions such as Gorou, Bassounga, and Faira.
The traditional lack of government regulation of this process has exacerbated its negative environmental impact. The DES now seeks to establish a locally controlled system of rural wood markets that also promote sustainable development. Rural village residents, who are most dependent on wood for energy, are the focus of the program and among the beneficiaries of the funds raised through taxes. Gasoline has been promoted as an alternative to wood, despite its source in nonrenewable fossil fuels and even more long-term environmental impact. The government, however, has made an effort to grant some forests, such as Guesselbodi, protected status.
Niger has actively begun to explore renewable energy resources in the twenty-first century, adopting a national strategy in 2004 that included the creation of a national renewable energy office. The government considers renewable energy an important tool in its efforts to achieve environmental sustainability and reduce poverty. Beginning in 2012, Niger began working on plans for the Kandadji hydroelectric power project along the Niger River, and smaller hydroelectric projects were under consideration; however, due to issues with resettlement and operational delays, construction on the project only began in 2019. Private businesses were offering renewable energy technologies such as solar power systems.
Niger is party to a number of international energy and environmental agreements in a variety of fields, including climate change, desertification, environmental modification, hazardous wastes, and ozone layer protection. The country is a signatory to the Kyoto Protocol. Niger hosted the first and second meetings of the renewable energy market in the Sahel and West Africa (MESAO). MESAO is a renewable energy forum dedicated to improving the technological and commercial viability of alternative energy sources and fostering the cooperation of the public and private sectors in the region.
Bibliography
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