Turkmen media referred to him using the title "His Excellency Saparmurat Niyazov Türkmenbaşy, President of Turkmenistan and Chairman of the Cabinet of Ministers". His self-given title Türkmenbaşy, or Turkmenbashi (pronounced [tyrkmɛnbaʃɯ]), meaning Leader of Turkmens, referred to his position as the founder and president of the Association of Turkmens of the World.

Foreign media criticized him as one of the world's most totalitarian and repressive dictators, highlighting his reputation of imposing his personal eccentricities upon the country, which extended to renaming months after members of his family, and recoining the Turkmen word for bread by the name of his mother. Global Witness, a London-based human rights organization, reported that money under Niyazov's control and held overseas may be in excess of US$3 billion, of which $2 billion is supposedly situated in the Foreign Exchange Reserve Fund at Deutsche Bank in Germany.[citation needed]

Niyazov was born in Gypjak, located in the Turkmen SSR. According to the official version, his father died in World War II fighting against Nazi Germany, while other sources contend that he dodged fighting and was therefore sentenced by a military court. The other members of his family were killed in a massive earthquake that leveled Ashgabat in 1948. He grew up in a Soviet orphanage before the state put him in the custody of a distant relative.

After finishing school in 1959, he worked as an instructor in the Turkmen trade union committee exploration. Then he studied at the Leningrad Polytechnic Institute , where in 1967 received a diploma as an electrical engineer. After graduating, he went to study in Russia, but was expelled a few years later for his academic failure.

In 1962, Niyazov started his political career, and then he joined the Communist Party. He quickly rose through the ranks, becoming First Secretary of the Communist Party of the Turkmen SSR in 1985. He gained this post after Soviet leader Mikhail Gorbachev removed his predecessor, Muhammetnazar Gapurov, following a cotton-related scandal. Under Niyazov, the Turkmen Communist Party was one of the most hardline and unreformed party organizations in the Soviet Union. On January 13, 1990; Niyazov became Chairman of the Supreme Soviet of the Turkmen SSR, the supreme legislative body in the republic. The post was equivalent to that of president.

Niyazov supported the Soviet coup attempt of 1991, but after it collapsed, he set about separating Turkmenistan from the dying Soviet Union. The Supreme Soviet declared Turkmenistan independent and elected Niyazov as the country's first president on October 27. On June 21, 1992, Niyazov was elected as the country's first popularly elected president; he was the only candidate. A year later, he declared himself "Türkmenbaşy," or "Leader of all Turkmen."

In 1994 a plebiscite extended Niyazov's term to 2002 so he could oversee a 10-year development plan. The official results showed that 99.9% of voters approved this proposal. On December 28, 1999, Parliament declared Niyazov President for Life; parliamentary elections had been held a few weeks earlier in which all candidates were hand-picked by the president.

Niyazov and his Russian-Jewish wife, Muza, had a son and a daughter, Murat and Irina, respectively.

Niyazov became president at the transition of Turkmenistan from a republic of the Soviet Union to an independent state. His presidency was characterized by an initial crumbling of the centralized Soviet model that in many respects was unsuited to function as a separate entity. Also, there were large amounts of foreign income from gas and petroleum reserves (~$2–4billion as of 2005). There was outside concern about press freedom and to a lesser extent religious rights of minority religious groups. Niyazov made a personal attempt to create a cultural background for the new state of Turkmenistan by writing and promoting the Ruhnama, an autobiography meant to guide the people of Turkmenistan with his ideas and promote native culture (and by extension prohibiting foreign culture). He also took part in creating new holidays with a specific Turkmen nature and introduced a new Turkmen alphabet to replace Russian Cyrillic.

Niyazov became a substitute for the vacuum left by the downfall of the communist system, with his image replacing those of Marx and Lenin. He renamed the town of Krasnovodsk "Turkmenbashi" after himself, and renamed schools, airports and even a meteorite after himself and members of his family. His many, sometimes erratic decrees, and the doting actions of the official Turkmen media gave rise to the clear appearance of a 'cult of personality'. The eccentric nature of some of his decrees, and the vast number of images of the president led to the perception, especially in western countries, of a despotic leader, rich on oil wealth glorifying himself whilst the population gained no benefit.