The decision by President Bola Ahmed Tinubu to remove Nigeria’s fuel subsidy in May 2023 has triggered a worsening fuel crisis in Niger Republic, intensifying economic struggles in the neighboring country.
Niger Faces Fuel Shortages as Smuggling Declines
For years, Niger Republic relied on smuggled fuel from Nigeria to meet nearly half of its domestic demand. However, with fuel prices rising in Nigeria post-subsidy removal, smuggling became less profitable, cutting off a key supply source for Niger.
By March 2024, major cities such as Niamey were facing severe petrol shortages, leading to skyrocketing fuel prices and disrupting daily life.
Niger’s Oil Refinery Struggles to Meet Demand
Niger’s sole refinery, located in Zinder, produces a limited number of fuel tankers daily, failing to meet national demand. Maazou Oumani Aboubacar, the Commercial Director of Sonidep, Niger’s state-owned oil company, confirmed that the country previously depended on smuggled fuel from Nigeria to sustain its economy.
“Before the subsidy removal, up to half of Niger’s fuel supply came illegally from Nigeria, serving large regions near the border,” Aboubacar stated.
Fuel Prices in Niger Soar
With the disruption of illegal fuel imports, petrol prices in Niger have reached alarming levels:
- Konni (near Nigeria) – 1,200 CFA (N2,500 per litre)
- Agadez – 3,000 CFA (N7,500 per litre)
- Arlit (near Algeria) – 3,500 CFA (N8,750 per litre)
Nigeria Implements Stricter Border Controls
Nigeria has intensified border security measures through Operation Whirlwind, a Nigeria Customs Service initiative aimed at curbing fuel smuggling. Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, noted that neighboring countries that once relied on smuggled Nigerian fuel are now struggling to obtain petrol at international market rates.
Niger Republic Turns to Nigeria for Help
Despite ongoing diplomatic tensions, Niger’s military government has requested emergency fuel supplies from Nigeria. A high-level delegation recently visited Abuja, leading to Nigeria approving the delivery of 300 petrol tankers (13.5 million litres).
A government insider suggested that this fuel supply agreement is being used as a diplomatic strategy to encourage Niger’s reintegration into ECOWAS.
“We see this as an opportunity to negotiate Niger’s return to ECOWAS, rather than just an economic transaction,” the official stated.
Internal Political and Economic Issues Worsen Niger’s Fuel Crisis
In addition to fuel shortages, Niger’s crisis has been aggravated by tensions between its military junta and Chinese oil companies.
According to security expert Zagazola Makama, the Nigerien government took a $400 million loan from the China National Petroleum Corporation (CNPC), using future crude oil deliveries as collateral. However, after failing to meet the repayment deadline, Niger’s junta expelled Chinese oil executives and froze refinery accounts, further crippling the country’s oil sector.
Nigeria-Niger Trade Booms Despite Political Tensions
Despite political friction, trade between Nigeria and Niger surged by 82% in 2024, increasing from N50.48 billion in 2023 to N91.92 billion in 2024.
- Nigeria’s exports to Niger nearly doubled to N82.38 billion in 2024.
- Imports from Niger also rose from N3.97 billion to N9.53 billion.
Trade with Burkina Faso and Mali also saw significant shifts:
- Burkina Faso: Trade increased 41.4%, from N12.92 billion in 2023 to N18.26 billion in 2024.
- Mali: Trade skyrocketed from N12.57 billion to N199.21 billion, driven by a surge in imports.
These changes coincide with the formation of the Alliance of Sahel States (AES) by Niger, Burkina Faso, and Mali, following their exit from ECOWAS.
ECOWAS Responds to Sahel Crisis
In response to growing instability, ECOWAS has activated its regional standby military force to address security threats in the Sahel. Nigeria’s Minister of Defence, Abubakar Badaru, has emphasized the need for stronger security cooperation.
Despite Niger’s exit from ECOWAS, Dr. Abdel-Fatau Musah, ECOWAS Commissioner for Political Affairs, stated that the organization will continue to facilitate the free movement of goods and people across the region.
