Niger: Nationalization of a subsidiary of the French Orano mining company
Niger’s ruling Transitional Military Council has decided to nationalize SOMAIR, a subsidiary of the French Orano company, which has been operating in the country’s uranium mining sector for decades.
A statement issued after the weekly government meeting on Thursday stated that “in the face of the irresponsible and illegal behavior based on loyalty to the French state-owned company Orano, a country that is openly hostile to Niger, Niger has decided, on the basis of full sovereignty, to nationalize Somair”.
Orano owns 63.4% of SOMAIR, while Niger owns 36.6%; The decision to nationalize this company comes after the Nigerien government previously announced that the French company had monopolized approximately 86% of the uranium produced, considering this inconsistent with the principle of quota sharing.
The government also reported violations by Orano, including the sudden withdrawal of French workers, repeated attempts to halt production, and the disruption of the company’s information system.
In addition to the nationalization of SOMAIR, the weekly meeting of the Nigerian government approved a project to nationalize the Nigerian Electricity Company, a state-owned joint venture in which several other parties, including the French Development Agency, hold varying stakes.
The statement issued after the weekly government meeting explained that it was decided to fully nationalize the company, transfer ownership of all shares and assets to the state, in exchange for financial compensation for the remaining shareholders.
The company’s board of directors was also dissolved, paving the way for the state to assume direct management, ensuring effective restructuring and balanced electricity policies for the benefit of the Nigerian people.
The nationalization of companies has been one of the pillars of Niger’s military junta, headed by General Abdourahamane Tiani, since its coup against civilian President Mohamed Bazoum in late July 2023, as part of what it calls restoring national sovereignty.
