Biology of Business

Niger

TL;DR

Largest state by area with four hydroelectric dams producing 1,920 MW—Nigeria's "Power House" since 1968—but doesn't receive resource-state revenue like oil regions. 2026: Supreme Court decides if electricity counts as natural resource extraction.

State/Province in Nigeria

By Alex Denne

Niger State is Nigeria's mitochondria—the largest state by land area at 76,363 square kilometers (8.6% of the country), producing the energy that powers the nation but fighting for recognition as a "resource state" the way oil-producing regions are. Four hydroelectric dams—Kainji, Jebba, Shiroro, and Zungeru—generate 1,920 megawatts of installed capacity. Yet Niger State doesn't receive the 13% derivation revenue that Delta or Rivers states get from petroleum. The state took the federal government to court in 2025, arguing that electricity counts as a natural resource just like oil.

The River Niger defines this place. Archaeological evidence at Minna shows settlement dating back 47,000 years, but the region's recorded history centers on Bida, the historic capital of the Nupe Kingdom. By the 15th century, Bida emerged as a craft powerhouse: brass metallurgy, glassmaking, fabric dyeing, wood carving, raffia weaving. UNESCO designated it a Creative City of Crafts and Folk Art in 2021, recognizing centuries of artisanal tradition. The River Niger provided trade routes—goods moved from Bida south to the delta and north to the Sahel. The river's floodplains supported agriculture; seasonal flooding deposited nutrients that made farming possible in the savanna.

Then Nigeria discovered the river's other gift: elevation drop. Kainji Dam opened in 1968, backing up the Niger River to create Nigeria's largest reservoir. Jebba followed in 1985, Shiroro in 1990. These weren't just power plants—they were national projects that positioned Niger State as the energy backbone. The dams enabled irrigation, fishing, and domestic water supply. Towns like New Bussa were built to relocate communities displaced by reservoir flooding. By the 1990s, Niger State branded itself "The Power House of the Nation," exporting electricity not just across Nigeria but to Benin, Togo, and Niger Republic.

But infrastructure aging reveals the paradox. In Q3 2025, Kainji generated just 374 megawatts against its 760-megawatt capacity—less than 50%. Shiroro and Zungeru also underperformed. The economic structure remains agriculture-dominant: cattle trading, shea nut processing, gold mining around Minna. The crafts of Bida persist but don't scale to industrial employment. The state's vast land area (the largest in Nigeria) means low population density and limited infrastructure. Despite producing 40% of Nigeria's hydroelectric power, the state remains economically peripheral.

By 2026, Niger State's legal argument tests a biological question: does the organism that produces the energy deserve a share of the returns, or is it just infrastructure? If the Supreme Court rules in their favor, it redefines what counts as a "resource state." If not, Niger State stays what it is—generating power for everyone else's growth.

Related Mechanisms for Niger

Related Organisms for Niger