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Tensions Rise Between African Neighbors Over Oil Export Blockade

by Geraldine S.
05/13/2024
in Global Trade, Trade Agreements

Benin has stated it will only permit fuel shipments from Niger through its ports once the landlocked country normalizes bilateral relations. Niger’s military government has accused Benin of breaching trade agreements by blocking the export of crude oil through its ports. Prime Minister Ali Mahamane Lamine Zeine addressed this issue during a news conference, following Benin’s announcement that it would bar Niger from using the Seme Kpodji port, located near Cotonou. Relations between Niger and Benin have been tense since the coup in Niger last July, which resulted in the ousting of President Mohamed Bazoum. Subsequently, Niger’s new leadership ended a military cooperation agreement with Benin, alleging support for a potential ECOWAS-led intervention to reverse the coup.

Benin has enforced ECOWAS sanctions, including border closures against Niger, which left many trucks carrying essential goods stranded. However, in December, the autonomous port of Cotonou lifted some restrictions, allowing imported goods to transit to Niger. The border was reopened after ECOWAS removed sanctions in February, following Niger’s announcement of its withdrawal from the regional bloc along with Burkina Faso and Mali, citing “inhumane sanctions.” Recently, Beninese President Patrice Talon called for the full reopening of Niger’s land border as a condition for allowing crude oil exports through Benin’s ports.

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This situation, according to Niger’s prime minister, is hindering Niger’s crude oil from reaching international markets, which he views as a breach of Benin’s trade commitments. Niger relies on Benin for exporting crude oil, which is crucial for its agreement with the China National Petroleum Corporation, valued at $400 million. This agreement involves exporting oil to China to repay a loan from Beijing. Benin has maintained that the blockade will remain until Niger reopens its border to Beninese goods, despite claims from Prime Minister Zeine that the closure is due to security concerns.

Get top supply chain report news on The Supply Chain Report. For international trade insights and tools, visit ADAMftd.com.

#AfricaTradeNews #OilExports #NigerBeninRelationsNews #TradeBlockadeNews #ECOWAS

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