The China-backed pipeline project in Niger faces challenges due to diplomatic tensions with Benin and a rebel group seeking to restore democracy following last year’s coup. The 1,930-kilometer pipeline from Agadem oil field to the port of Cotonou is at a standstill, impacting Niger’s plans to increase oil production significantly. The Patriotic Liberation Front rebel group has attacked the pipeline, demanding the release of the former president. Economic growth and stability are at risk as the pipeline’s closure affects Niger’s budget and the World Bank’s projected growth rate of 6.9%.
The diplomatic dispute with Benin stems from President Bazoum’s overthrow in the coup, leading to closed borders and economic losses for both nations. Niger accuses Benin of hosting French troops that threaten their security, creating a deadlock in the reopening of borders necessary for oil exportation. As regional tensions escalate, the Chinese-backed pipeline project is caught in the crossfire, jeopardizing economic opportunities for both countries. Chinese mediation efforts failed as Benin imprisoned Nigerien oil workers, triggering the pipeline’s closure and allegations of oil theft.
With Niger seeking support from Russia and Benin aligned with France and ECOWAS, the diplomatic impasse over the pipeline remains unresolved. The Chinese investment in the pipeline, aimed at boosting Niger’s oil production, is at risk as the internal security crisis and external disputes persist. Niger’s military government faces financial challenges following the coup, impacting its ability to meet obligations and fund public services. The ongoing crises require cautious financial management to ensure stability in the midst of escalating tensions with Benin and the rebel group.
The pipeline project’s stalled operation poses a threat to Niger’s economic growth, potentially hindering the country’s recovery and development plans. As one of the world’s poorest countries, Niger heavily relies on external support, which has been withheld after the coup. The completion and successful operation of the pipeline are crucial for Niger to leverage its oil resources and increase revenue for economic growth and development initiatives. Efforts to resolve the diplomatic tensions and security threats surrounding the pipeline are essential for Niger to realize its potential as an oil-exporting country.
Should the pipeline remain closed due to ongoing disputes and security threats, Niger’s economic prospects could be further jeopardized, impacting the country’s stability and resilience. The need for a swift resolution to the crises involving Benin, the rebel group, and the Chinese-backed project is paramount to ensure Niger’s economic recovery and sustainable development. By addressing the diplomatic tensions and security challenges, Niger can create a conducive environment for the pipeline project to resume operations and contribute to the country’s economic prosperity and stability in the long term.
