China and Russia have made strategic moves on the continent of Africa. Niger has gone so far as to order all American troops gone, as China and Russia move in…
A China-supported pipeline project intended to elevate Niger into an oil-exporting nation faces significant setbacks due to a domestic security crisis and a diplomatic row with Benin. This dispute follows the coup that ousted Niger’s democratic government last year.
Niger Confirms Anti-Junta Rebels Responsible for Oil Pipeline Attack
The Niger military government has confirmed that rebels have damaged an oil pipeline transporting crude oil to neighboring Benin.
The Patriotic Liberation Front, advocating for the release of former president… pic.twitter.com/n5OTZvI2SD
— Afrik Times (@afriktimes) June 23, 2024
Spanning 1,930 kilometers, the pipeline extends from the Chinese-developed Agadem oil field in Niger to the port of Cotonou in Benin. This project, part of a $400 million agreement with China’s state-run national petroleum company signed in April, aimed to boost Niger’s oil production nearly fivefold. However, its progress has been halted by diplomatic tensions with Benin, culminating in the pipeline’s closure last week, and a recent attack by the local Patriotic Liberation Front, which has threatened further disruptions unless the deal with China is revoked.
The rebellion, spearheaded by Salah Mahmoud, a former rebel leader, emerged following Niger’s shift to military rule, exacerbating the nation’s already dire security issues.
According to experts, these ongoing crises pose significant risks to Niger, one of the poorest countries globally, which relies heavily on external financial support that has been suspended post-coup.
Niger’s oil refining capacity is limited to 20,000 barrels per day, primarily meeting domestic needs, whereas the pipeline was expected to handle exports of up to 90,000 barrels daily. Such an increase was seen as crucial for boosting national revenue and aiding recovery from the economic isolation caused by the coup.
Niger’s junta confirmed that rebels damaged an oil pipeline to Benin.
The Patriotic Liberation Front, seeking ousted President Bazoum’s release, claimed the attack, threatening more strikes on oil facilities. This incident escalates tensions as Niger-Benin relations deteriorate pic.twitter.com/qj13D705SO
— The News, Bruh (@thenewsbruhNFT) June 23, 2024
Ryan Cummings, the director of a security consulting firm focusing on Africa, noted, “It is a completely messy situation and the only way for a resolution is if both administrations directly engage and resolve issues.”
The World Bank had forecasted Niger to be the fastest-growing economy in Africa this year, with a growth rate of 6.9%, largely fueled by anticipated oil exports. However, the ongoing diplomatic strife and internal conflicts threaten to undermine these projections.
The tensions between Niger and Benin escalated after the July coup that deposed President Mohamed Bazoum, leading to the closure of borders by neighboring West African countries. Although Benin has since reopened its borders, Niger continues to keep theirs closed, accusing Benin of harboring foreign military forces that threaten its security.
The standoff has not only heightened regional tensions but has also strained economic relations, as Benin is losing substantial revenue in transit fees.
🇳🇪🇧🇯 Niger halts oil pipeline exports to China over Benin spat
Niger has shut off oil exports to China via its pipeline to Benin’s coast, Oil Minister Mahamane Moustapha Barke Bako said on Thursday, deepening a standoff between the West African neighbours.
At the Agadem… pic.twitter.com/22hQZEAkpz
— Emeka Gift Official (@EmekaGift100) June 21, 2024
With Niger leaning towards Russia for diplomatic support and Benin aligning with France and the West African bloc, China has attempted to mediate the situation to safeguard its investment. Despite these efforts, which saw the initial successful extraction of oil in May, the resolution remains elusive as the diplomatic tensions have intensified.
This week, Benin convicted and imprisoned three out of five Nigerien oil workers it had arrested at its port for alleged “use of falsified computer data,” further escalating the conflict. In response, Niger shut down the pipeline, with officials claiming their oil was being appropriated by external parties.
Major Points
- A China-backed pipeline project in Niger aimed at increasing oil exports is hindered by a security crisis and a diplomatic row with Benin following a coup.
- The pipeline, extending from Niger to the port of Cotonou in Benin, is crucial for boosting Niger’s oil production from 20,000 to 90,000 barrels per day.
- Rebel attacks and ongoing tensions have resulted in the closure of the pipeline, with threats of further disruptions unless a $400 million deal with China is canceled.
- The economic standoff has worsened regional tensions, with Benin losing significant revenue and Niger facing economic isolation.
- Diplomatic efforts by China and the involvement of Russia and France in regional dynamics have yet to resolve the escalating conflict.
Kirk Volo – Reprinted with permission of Whatfinger News
