The revolution that overthrew the democratic government of Niger last year has resulted in an internal security crisis and a diplomatic spat with neighboring Benin, endangering a China-backed pipeline that would enable Niger to become an oil exporting nation.
The 1,930-kilometer (1,200-mile) pipeline connects the port of Cotonou in Benin to the Agadem oil field in Niger, which was constructed by China.
With the signing of a $400 million agreement with China’s state-run national petroleum firm in April, it was intended to assist the oil-rich but landlocked Niger in increasing its oil production by nearly five times.
However, a number of obstacles have prevented it from moving forward, such as the diplomatic spat with Benin that resulted in the pipeline’s closure last week.
This week, a local rebel group called the Patriotic Liberation Front also launched an attack. They claimed to have destroyed a portion of the pipeline and threatened further strikes if the $400 million deal with China was not cancelled.
Laptops 1000After the junta in Niger came to power, the group—led by the former rebel commander Salah Mahmoud—took up arms, posing further security risks to the nation, which is already dealing with a fatal security crisis.
Niger, one of the poorest nations in the world, depends mostly on foreign aid that has been delayed since the coup, according to analysts, who warn that the crisis could worsen the country’s situation.
Only 20,000 barrels per day (bpd) of refining can currently be done locally in Niger to meet local demand, but up to 90,000 barrels can be exported daily via the pipeline, according to officials and analysts.
This achievement would help the nation boost its revenue and lift the coup sanctions that had damaged its economy and cut it off from its neighbors.
“The only way for a resolution is if both administrations directly engage and resolve issues,” stated Ryan Cummings, director of security consultancy firm Signal Risk, which focuses on Africa.
“It is a completely messy situation.”
How the pipeline’s halted functioning might affect Niger’s overall economic growth is one of the main concerns.
With oil exports serving as a major boost, the World Bank had predicted that the economy of the West African nation would recover and develop at the quickest rate in Africa this year, at a rate of 6.9%.
The deposal of Niger’s president, Mohamed Bazoum, in a coup in July led to the closure of Niger’s borders by neighboring West African countries and the foundation of the so-called local liberation organization, which is currently threatening additional attacks on the oil project.
While Benin and its neighbors have reopened their borders, Nigerien officials have refused to do the same, claiming that Benin is harboring French troops that are a threat to their nation since Niger terminated its military links with France.
As a result, Patrice Talon, the president of Benin, has made the reopening of the border a prerequisite for oil exportation through the country’s port.
Laptops 1000Benin also loses out on millions of dollars in transit fees, meaning that both nations suffer economic setbacks.
Observers claim that since the coup, which followed a series of previous military takeovers, the standoff is exacerbating regional tensions.
The Economic Community of West African States, or ECOWAS, which often handles disputes of this nature, has been pitted against Niger in this situation.
China has attempted to intervene to break the deadlock and profit from its investment in the project, because Niger has shifted its diplomatic stance in favor of Russia and Benin has sided with France and the West African group.
But as the diplomatic dispute deepened, Beijing’s efforts—which had led to the first oil lifting from the Agadem field in May—broke down.
Three of the five Nigerien oil workers that Benin recently apprehended at the Beninese port were found guilty and imprisoned this week after they crossed the border and were charged with “use of falsified computer data.”
Niger closed the pipeline last week as a result of their detention, according to a senior government official, who claimed that their oil was being “stolen by others.”
Since the coup, Niger’s military government has been unable to meet some of its financial obligations, including debt repayment and funding for infrastructure, and one of their main concerns at this point is “whether they have the requisite fiscal capacity to keep paying for public services,” according to Cummings.
sIn light of the recent issues, he stated that the Niger junta “definitely has to be more cautious in handling the financial position of the country.”
