Border Dispute Between Niger and Benin Disrupts Oil Exports

A border dispute between Niger and Benin has escalated, resulting in Benin blocking Niger’s use of its port to export crude oil. The blockade stems from Niger’s refusal to fully reopen its border with Benin, citing security concerns. This dispute jeopardises Niger’s plans to commence crude oil exports under a significant deal with China National Petroleum Corp, which would have provided crucial revenue for Niger.

Niger’s Prime Minister Ali Mahaman Lamine Zeine denounced Benin’s blockade, asserting that it violates trade agreements between the two nations and with Niger’s Chinese partners. Zeine highlighted the importance of maintaining the border closure for security reasons, stressing the presence of bases in Benin allegedly training terrorists to destabilise Niger. Despite Benin’s demands for a full border reopening, Niger remains firm, prioritising security over trade relations.

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Benin’s President Patrice Talon accused Niger of treating Benin as an enemy and insisted on collaboration to restore ties. Talon’s government demands that Niger reopen its side of the border to use Benin’s ports. However, Niger’s junta has yet to respond to Talon’s comments.

The border dispute threatens Niger’s oil export plans, impacting its production of approximately 20,000 barrels per day, primarily for domestic consumption. With the completion of a Chinese-built pipeline through Benin, production was expected to increase significantly to 110,000 barrels per day. However, the ongoing dispute undermines the project and strains the historically close trade relations between the two countries.

The economic ramifications of the dispute are significant. Benin stands to lose approximately $7 million in daily oil transit fees, impacting its economy. Additionally, the closure of Niger’s border with Benin has shifted trade routes to neighbouring countries like Togo, further exacerbating economic challenges for Benin.

The border dispute underscores the complex interplay between security concerns and economic interests in the region. While both countries seek to protect their interests, finding a resolution that addresses security and economic concerns remains elusive.