As crises hit plagued Niger-Benin oil pipeline, it may be up to China to end the deadlock

After pumping billions into Niger’s oil industry, a political crisis could scupper any chance for China to see a return on its investment

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After years of building, the Niger-Benin oil pipeline is now at a standstill while various political crises play out. Photo: AFP

Published: 1:00pm, 13 Jul 2024

With the taps turned off on a Chinese-funded oil pipeline from Niger to Benin, China has found itself in the middle of negotiations to solve the internal crises that are plaguing relations between the two West African nations.

China pumped billions of dollars into the building of the 2,000km (1,243-mile) Niger-Benin oil pipeline, running from the Agadem oilfield to Benin’s Atlantic coast. China was betting on the export of the oil to recoup that money – as well as a US$400 million loan that China advanced to Niger in April that was to be repaid through oil shipments.

But the expectations of 90,000 barrels of crude oil gushing through the pipeline every day were quickly scuppered when Benin blocked the loading of oil into ships in early May over a border dispute with Niger.

China has been leading negotiations under the Benin-Niger inter-state steering committee, with Chinese diplomats and officials from China National Petroleum Corporation (CNPC) meeting government officials in the two West African countries in a bid to resolve the dispute.

Now two former Beninese presidents have also joined the mediation, something which observers have said China will support as it tries to remedy the situation currently threatening its oil investments.

The former leaders, Thomas Boni Yayi and Nicephore Soglo, joined the talks in late June when they visited Niger capital Niamey and had a three-hour meeting with General Abdourahamane Tiani, president of the National Council for the Safeguard of the Homeland (CNSP), the military junta that took power in July last year after leading a coup.

Any path that leads to a resolution of the current stalemate would be welcomed by China, according to Seidik Abba, president of the International Centre for Studies and Reflections on the Sahel (CIRES).