Niger considers routing oil through Chad after Benin dispute

A China-backed pipeline project aimed at transforming Niger into an oil-exporting nation faces significant threats from an internal security crisis and a diplomatic dispute with neighboring Benin. These issues have arisen in the wake of a coup last year that ousted Niger’s democratic government.

The 1,930-kilometer (1,200-mile) pipeline, stretching from Niger’s Chinese-built Agadem oil field to the port of Cotonou in Benin, was intended to significantly boost Niger’s oil production under a $400 million deal with China’s state-run petroleum company signed in April. However, progress on the pipeline has been hampered by various challenges, including the recent diplomatic rift with Benin that resulted in the pipeline’s closure. Additionally, the Patriotic Liberation Front, a local rebel group, attacked and reportedly damaged part of the pipeline, threatening further actions unless the deal with China is scrapped.

In response, Niger’s junta is exploring alternative routes for exporting oil, such as through Chad and Cameroon. This option, along with Nigeria, was previously considered before the former government decided on the Benin route. However, Seidik Abba, president of the International Centre for Studies and Reflections on the Sahel (CIRES), points out that the Chad route presents its own difficulties, including the need to construct a new pipeline and secure investment. Abba is skeptical about whether China, having already invested in the Benin pipeline, would reinvest in a new project through Chad.

The disruption of the pipeline could severely impact Niger’s economic growth. The World Bank had predicted that Niger’s economy would grow the fastest in Africa this year, at a rate of 6.9%, largely due to expected oil exports.

The diplomatic tensions with Benin began in July following the coup that deposed Niger’s president, Mohamed Bazoum. In response, West African countries closed their borders with Niger, and the rebel group threatening the pipeline emerged. Both Niger and Benin are suffering economically from the stalled pipeline, with Benin losing out on substantial transit fees.