Benin Halts China’s Initial Oil Shipment from Niger Over Boarder

Summary:

• Benin blocks China’s first oil shipment from Niger amidst a border dispute, impacting a $400 million loan agreement. The standoff reflects regional tensions and underscores the importance of cooperation for economic growth.

---

China’s inaugural crude shipment from Niger faces obstruction as Benin intervenes due to an ongoing border disagreement with the landlocked West African nation.

Benin has halted fuel exports from its port after Niger’s junta-led government refused to open its southern land border to incoming goods. This move impacts shipments linked to a $400 million commodity-backed loan from China National Petroleum Corp.

Benin President Patrice Talon emphasized, “If you want to load your oil in our waters, you can’t view Benin as an enemy and at the same time expect your oil to cross our territory.” He underscored the need for collaboration while highlighting Niger’s refusal to allow trucks to cross.

Niger secured the loan from China at a 7% interest rate, intending to repay it by exporting oil over 12 months. These energy shipments are pivotal for Niger’s economic growth, projected at 11.2% by the International Monetary Fund.

China National Petroleum Corp. invested $4.6 billion in Niger’s petroleum sector, including a 1,200-mile pipeline to transport oil to Benin. The anticipated shipping volume was set to reach 90,000 barrels per day initially, with plans to increase to 110,000 barrels per day upon full pipeline operation.

The border standoff stems from last year’s coup in Niger, prompting border closures by the Economic Community of West African States. While sanctions were lifted this year, Niger maintains its border closure with Benin, impeding regional trade.

Benin’s actions aim to uphold regional agreements and open borders for commerce. Talon noted, “We told the Chinese: be careful, there cannot be Chinese boats in our waters to load Nigerien products that the Nigeriens themselves have banned crossing Benin.”