Nigeria has responded to the fuel crisis in Niger by approving the immediate supply of 300 trucks of Premium Motor Spirit (PMS), aiming to alleviate the severe shortage affecting the country.
The Nigerian National Petroleum Company Limited (NNPCL) coordinated the delivery, which was prompted by urgent requests from Nigerien officials.
A senior government official revealed that this fuel supply is strategically being used as part of ongoing negotiations with Niger, with the ultimate goal of bringing the country back into the Economic Community of West African States (ECOWAS).
The official clarified that while Niger had been reliant on fuel from a Chinese refinery, the closure of the supplier’s operations due to ongoing issues left the country facing limited fuel options.
The Nigerian government intends to use the fuel supply as a “bargaining chip” in the talks to encourage Niger’s return to ECOWAS membership.
While the fuel supply agreement could have been finalised by the Presidency, it was confirmed that NNPCL, now operating as a limited liability company, managed the arrangement.
The fuel crisis in Niger escalated dramatically when the price of petrol soared to as high as N8,000 per litre in certain areas. This increase was a direct result of Nigeria’s decision to remove the fuel subsidy, which caused prices to fluctuate depending on proximity to the Nigerian border.
Mallam Abubakar Usman, a transborder businessman, explained that fuel prices varied widely across the country.
In the border town of Konni, a litre costs 1,200 CFA (about N2,500), while in Agadez, the price rose to 3,000 CFA (around N7,500). In Arilit, a town near the Algerian border, the cost of a litre reached 3,500 CFA (approximately N8,750).
The fuel shortage was exacerbated by the deteriorating relationship between Nigeria and Niger, with official sources confirming sightings of trucks carrying petrol crossing the border.
The fuel crisis in Niger may have been partly self-inflicted, following a clash between the junta and Chinese oil companies, which have long controlled the country’s petroleum sector.
In March 2024, the China National Petroleum Corporation extended a $400 million loan to the Nigerien government, using future crude oil deliveries as collateral.
However, when it came time to repay the debt, the junta found itself financially strained and chose to confront China by imposing an $80 billion tax on the Soraz refinery, despite an existing debt of $250 billion owed by the state-owned Sonidep.
When China refused to provide further loans, the junta expelled Chinese oil executives and seized the refinery’s bank accounts. This move led to the collapse of Niger’s petroleum sector, heavily reliant on Chinese investment and expertise.
With the Soraz refinery in Zinder no longer operational, Niger’s domestic fuel production was severely impacted.
The country’s only refinery can supply just 25 tanker trucks of petrol per day, far below the national demand, which is double that amount. This situation has worsened following a reduction in fuel prices by the military regime, which has inadvertently increased domestic consumption.
