Niger in crisis: how could the country overcome obstacles to export its oil

Niger in crisis: how could the country overcome obstacles to export its oil
Niger in crisis: how could the country overcome obstacles to export its oil

An ambitious pipeline project, backed by China, aims to transform the country into a major oil exporter. However, significant challenges threaten this bold vision.

An ambitious pipeline project but fraught with pitfalls

The pipeline, 1,930 kilometers long, aims to connect the Agadem oil field to the port of Cotonou in Benin. This titanic project was to allow Niger to increase its oil production fivefold thanks to an investment of 400 million dollars from the Chinese.

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Despite these promising prospects, major obstacles remain. Diplomatic tensions with Benin recently led to the closure of the pipeline. Additionally, attacks by local rebel groups threaten to further compromise the project.

The search for alternatives: a complex but necessary solution

Faced with these challenges, Niger is exploring other routes to export its oil. Among the options considered, transit through Chad and Cameroon appears to be a viable alternative. However, this would require building a new pipeline and finding new investors.

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Seidik Abba, president of the International Center for Studies and Reflections on the Sahel, believes that convincing Chinese investors to re-inject funds into another pipeline will not be easy. The uncertainty surrounding this option therefore remains high.

Economic impact and regional tensions

The shutdown of the pipeline could have significant repercussions on the Nigerien economy. The World Bank had forecast economic growth of 6.9% for this year, mainly driven by oil exports. Blocking the pipeline could therefore slow down this dynamic.

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Tensions between Niger and Benin date back to a coup last July. Borders have been closed, amplifying regional frictions. Benin, meanwhile, also suffers economic losses due to uncollected transit fees.

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