EFSCR Series on the National Audit Reports 2021, 2022 and 2023

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NAWEC and the Electricity Sector: The Gambia’s Largest Public Financial Liability

The National Audit Office (NAO) reports for 2021, 2022, and 2023 expose a crippling financial and governance crisis within the National Water and Electricity Company (NAWEC) and the wider energy sector. Billions of dalasi in loans, grants, and public funds have been mismanaged, unaccounted for, or at risk of loss, making NAWEC the single largest drain on the national treasury.

Billions in Public Debt Without Accountability

Across three years, the Government has on-lent over D7 billion to NAWEC for multiple electricity projects without any risk assessment or repayment plan, violating Section 47(2) of the Public Finance Act.

These loans spanning the Brikama Power Station, Kotu Expansion, Brikama II Generator, and Network Upgrade projects remain largely unpaid.

Auditors repeatedly warned that NAWEC is financially insolvent, and that continued lending distorts national accounts by overstating assets that will never be recovered. Instead of enforcing repayment, the Ministry of Finance even contemplated debt cancellation, which would deepen fiscal losses and set a dangerous precedent.

Misuse of Energy Funds and Weak Oversight

In 2022 and 2023, audit findings show billions more flowing through poorly supervised electricity projects:

• GERMP, ECOWAS Electricity Access, GEAP, and Renewable Energy Projects worth over D45 billion in commitments were riddled with delays and weak oversight.

• Government utility arrears of D138.7 million were wrongly settled from the contingency fund constituting a serious budget violation.

• The audits noted no financial monitoring or repayment performance for energy-sector loans, while new loans continued to be issued.

A Sector in Perpetual Crisis

NAWEC’s financial collapse continues to threaten national fiscal stability. The company’s chronic debt, poor governance, and dependence on bailouts undermine electricity reliability and drain scarce resources. The government’s tolerance of NAWEC’s failures has turned the power sector into a perpetual fiscal black hole.

In Summary

Between 2021 and 2023, the NAO concluded that the energy and electricity sector, especially NAWEC remains one of the largest sources of financial risk to the Gambian state.

• The company is insolvent in practical terms, unable to repay government loans totaling over D7 billion, and reliant on continuous bailouts.

• Major energy infrastructure projects worth tens of billions of dalasi are heavily grant- or loan-dependent but suffer weak oversight, poor repayment, and audit non-compliance.

• The sector’s governance crisis now poses a long-term threat to national fiscal stability and reliable power delivery.

Call to Action

We call on the President, the National Assembly, and the Gambia Public Utilities Regulatory Authority (PURA) to act decisively:

1. Audit and publish the full list of NAWEC loans, grants, and arrears since 2017.

2. Suspend new government guarantees or loans to NAWEC until a clear restructuring plan is approved.

3. Hold the Ministry of Finance and NAWEC Board accountable for violations of the Public Finance Act.

4. Implement independent financial and technical audits of all ongoing electricity projects.

Billions of dalasi meant to light homes and power industries have vanished into debt, waste, and mismanagement.

Gambians are paying the price through high tariffs, poor supply, and rising public debt. The bleeding must stop.

2025 – The Year of Transparency and Accountability