Challenges Facing the China-Backed Niger-Benin Oil Pipeline

A China-backed pipeline that would make Niger an oil-exporting country is facing significant challenges due to an internal security crisis and a diplomatic dispute with neighboring Benin. The pipeline, stretching 1,930 kilometers from Niger’s Agadem oil field to the port of Cotonou in Benin, aims to boost Niger’s oil production nearly fivefold through a €373 million deal with China’s national petroleum company.

Security Threats and Operational Disruptions

The pipeline project has been hampered by security threats, including an attack by the Patriotic Liberation Front rebel group, which targeted a portion of the pipeline. The rebel group is demanding the release of former president Mohamed Bazoum, who was ousted in a coup last year. The disruptions have raised concerns about the impact on Niger’s economic growth, particularly as the country heavily relies on revenue from oil exports.

Diplomatic Disputes and Economic Implications

The diplomatic tensions between Niger and Benin, stemming from the coup in Niger, have led to the closure of the pipeline and border restrictions. Benin has made oil exportation through its port conditional on the reopening of the border, resulting in financial losses for both countries. The impasse has strained regional relations and complicated efforts to resolve the crisis.

Chinese Mediation Efforts and Escalating Tensions

China, as a key investor in the pipeline project, has attempted to mediate the dispute between Niger and Benin. However, escalating tensions and recent arrests of Nigerien oil workers in Benin have further strained relations. The breakdown in negotiations poses challenges for all parties involved, with implications for future investments and regional stability.