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Benin Blocks Niger’s Oil Exports Amid Border Dispute

Benin Blocks Niger's Oil Exports Amid Border Dispute

Benin has halted Niger’s use of its port for exporting crude oil as a border dispute intensifies between the two neighbouring nations. President Patrice Talon’s administration insists that landlocked Niger must reopen its side of the border to utilise Benin’s ports.

Accusing Niger of treating Benin as an enemy, Mr. Talon’s government asserts that cooperation is essential for normalising trade relations.

Tensions escalated following a military coup in Niger last year, prompting Benin and other West African nations to impose sanctions, including border closures, in an effort to restore democratic governance.

While these sanctions were partially lifted in February by the Economic Community of West African States (ECOWAS), Niger’s refusal to reopen its land border with Benin has hindered progress.

President Patrice Talon

Mr. Talon emphasised that Niger’s cooperation is necessary for loading oil in Benin’s waters, warning against illicit activities or informal exchanges. Niger’s military junta has yet to respond to Mr. Talon’s remarks.

Benin’s action jeopardises Niger’s plans to commence oil exports. With production currently around 20,000 barrels per day, primarily for domestic use, Niger aims to significantly increase production to 110,000 barrels per day with the completion of a 2,000-kilometre-long Chinese-built pipeline through Benin.

The dispute not only undermines this project but also strains the historically close trade relations between the two countries.

Herve Akinocho, director of the Centre for Research and Opinion Polls in Benin, estimates daily losses of approximately $7 million in oil transit fees that Niger would have paid. He underscores the broader economic impact on Benin, particularly in the transport sector, due to Niger’s decision to keep the border closed.

Before the coup, most of Niger’s imports and exports transited through Benin, but now they are redirected through Togo, exacerbating the economic challenges faced by Benin.

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