The information, announced by a French media outlet, has been relayed by numerous Beninese newspapers. However, it has not yet been officially confirmed. 

According to media sources, the Beninese government has sent a letter to the China National Petroleum Corporation, in charge of managing the Niger-Benin pipeline, and to the Chinese ambassador to Benin, informing them of its decision to block all vessels transporting oil from Niger through the port of Sèmè-Kpodji.

No official sources commented on this news until around 10 o'clock this morning. Press reports associate this situation with Niger's unilateral blockade of its border with Benin, even though the Community of West African States (ECOWAS) has lifted the sanctions that isolated the Sahelian country.

But another hypothesis could also be the existence of disagreements over the settlement of rights of way. Agreements on these aspects are not public knowledge. At the beginning of March 2024, a delegation of decision-makers from Niger customs, notably from the "regulations, cooperation, control and facilitation of economic partnership" department, visited their Beninese counterparts in Cotonou.

"In a few days, Niger will begin the process of exporting its crude oil. This phase is of highly strategic importance for both Niger and Benin, as the country from which the exports will originate. Each of the 2 states will need to develop strategies to achieve its objectives," said the head of the Niger delegation, without elaborating further.

It subsequently emerged that a $400 million agreement had been signed with China for the sale of the crude. Given the current state of relations between the leaders of the 2 countries, it is not certain that Benin's interests were fully taken into account.

The construction of the 2,000-kilometer pipeline has been the subject of discussions with various leaders. Negotiations began while Mahamadou Issoufou was still president, and continued with his successor Mohamed Bazoum. But his arrest and ouster by the military regime currently in power is clearly not a scenario that was taken into account in the partnership agreement surrounding the project.

To date, Benin remains the only country bordering Niger that is not a member of the ESA, with which its borders remain closed. Officially, this is due to the presence of French troops, a country with which the diplomatic break is now a foregone conclusion. For its economy, particularly that of the port of Cotonou, this represents a constraint and a loss of revenue.

It should also be said that cooperation between the 2 countries in the fields of transport and logistics has involved Benin making major investments, which are now in jeopardy. For Niger, finding a way to move its 90,000 barrels of oil a day is almost vital.

We don't know what plans the junta at the head of Niger's transition has for this windfall. We also don't know what the actual rent represents in the sales contract signed with China.

Agence Ecofin