Niger PM Condemns Benin's Oil Export Blockade, Citing Security Concerns

Niger's Prime Minister Ali Mahaman Lamine Zeine has denounced Benin's blockade of Niger's oil exports, accusing the neighboring country of violating trade agreements between the two nations and with China. The dispute stems from Niger's refusal to fully reopen its border with Benin due to security concerns, prompting Benin to block supplies of Niger's crude oil to ships in its port.

Why this matters: The blockade has significant implications for Niger's economy, as it jeopardizes the country's plans to commence crude exports and secure funding for bond payments. Moreover, the dispute highlights the broader security concerns in the region, as Niger battles a decade-old insurgency led by armed groups linked to Islamic State and Al Qaeda.

The blockade jeopardizes Niger's plans to commence crude exports under a $400 million deal with China National Petroleum Corp (CNPC), which is crucial for funding bond payments missed during regional sanctions imposed following a July 2023 coup in Niger. Prime Minister Zeine emphasized that the blockade violates about a dozen accords signed by Benin, Niger, and Chinese entities relating to the recently launched PetroChina-backed pipeline linking Niger's Agadem oil field to the Benin port of Cotonou.

"This means that the country agreed not to take any decision that would stop the flow of Niger's crude oil to the international market. This is serious. This is a violation of an agreement," Prime Minister Zeine stated, highlighting the gravity of Benin's actions. He further justified Niger's border closure, citing security concerns: "In Benin's territory, there are bases where in some, terrorists are trained to come and destabilise our country. So, it is for simple security reasons that we decided to maintain the border closure."

Relations between Niger and Benin have been strained since the July 2023 coup in Niger, which led to the imposition of strict sanctions by the West African regional bloc ECOWAS for more than six months. Niger is currently battling a decade-old insurgency led by armed groups linked to Islamic State and Al Qaeda, which are seeking to expand their reach into coastal countries from the central Sahel region.

Despite Benin's demand for Niger to reopen its border and normalize relations before lifting the blockade, Prime Minister Zeine remains firm on maintaining the border closure until Niger's territory is secured. The ongoing dispute threatens to disrupt Niger's oil export plans and its crucial deal with CNPC, with no clear resolution in sight as both countries stand their ground on the contentious issues of border security and trade agreements.

Key Takeaways

• Niger's PM denounces Benin's blockade of oil exports, citing trade agreements and Chinese partnerships.
• Blockade jeopardizes Niger's plans to commence crude exports and secure funding for bond payments.
• Niger refuses to reopen border with Benin due to security concerns, including terrorist training bases.
• Dispute highlights broader security concerns in the region, including decade-old insurgency.
• No clear resolution in sight as both countries stand firm on border security and trade agreements.