Less than two years after President Bola Ahmed Tinubu ended Nigeria’s fuel subsidy, the effects of the decision are now being severely felt in neighboring Niger Republic.
Findings by The PUNCH indicate that trade between the two countries surged by 82% in 2024, despite ongoing diplomatic tensions. However, the removal of Nigeria’s fuel subsidy has led to a worsening fuel crisis in Niger, forcing the country to seek emergency supplies from Nigeria.
Oil dealers have raised concerns over the closure of filling stations in border towns, citing revenue losses due to reduced cross-border fuel trade.
Fuel Scarcity Hits Niger Republic
Since early March, Niger has been grappling with severe petrol shortages, disrupting economic activities in major cities, including Niamey. For years, the country relied on Nigeria for nearly 50% of its fuel supply, with a significant portion smuggled through illegal routes.
However, Tinubu’s removal of the fuel subsidy in May 2023 caused petrol prices in Nigeria to soar, making fuel smuggling less lucrative. Countries like Benin and Togo, which also benefitted from Nigeria’s cheap fuel, were similarly affected.
Niger’s only refinery in Zinder, which produces a limited number of fuel tankers daily, has struggled to meet the country’s demand. The Commercial Director of Sonidep, Niger’s state-owned oil company, Maazou Oumani Aboubacar, confirmed that up to half of Niger’s fuel supply previously came from Nigeria before the subsidy was scrapped.
“The fuel that came into Niger illegally from Nigeria represented up to half of the market. It supplied the large regions near the border between the two countries,” Aboubacar stated.
Nigeria’s enforcement of stricter border controls has further worsened the crisis. The Nigeria Customs Service launched Operation Whirlwind, targeting fuel smuggling networks.
“The high cost of petrol in Nigeria has significantly reduced illegal bunkering. Countries that once depended on smuggled Nigerian fuel now have to refine or import at international prices,” said Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria.
Reports indicate that in some parts of Niger, a litre of petrol now sells for up to N8,750 due to the scarcity. Prices vary based on proximity to the Nigerian border, with rates as follows:
Konni (near Nigeria) – 1,200 CFA (N2,500 per litre)
Agadez – 3,000 CFA (N7,500 per litre)
Arilit (near Algeria) – 3,500 CFA (N8,750 per litre)
Niger Republic Seeks Nigeria’s Help Amid Diplomatic Tensions
Despite strained diplomatic relations, Niger’s military government has turned to Nigeria for fuel supplies. A high-ranking delegation visited Abuja to negotiate a deal, resulting in Nigeria approving 300 petrol tankers (13.5 million litres) for delivery.
A government official stated that Nigeria sees the fuel supply as a strategic diplomatic tool to encourage Niger’s return to ECOWAS.
“We do not want to blow our trumpet. Rather, we want to use it as a bargaining chip to bring Niger back to ECOWAS,” the source said.
Oil marketers confirmed the deal but assured that Nigeria has sufficient fuel reserves to assist Niger without creating shortages at home.
The fuel crisis in Niger was partly self-inflicted, following a dispute between the military junta and Chinese oil firms.
Security analyst Zagazola Makama reported that in March 2024, Niger’s military government secured a $400 million loan from China National Petroleum Corporation using future crude deliveries as collateral.
When the repayment deadline arrived, Niger defaulted. Instead of renegotiating, the junta responded by expelling Chinese oil executives and freezing refinery bank accounts—a move that crippled the country’s petroleum sector.
Trade Between Nigeria and Niger Surges Despite Tensions
Despite diplomatic friction, trade between Nigeria and Niger rose by 82% in 2024, reaching N91.92 billion, compared to N50.48 billion in 2023.
According to the National Bureau of Statistics, the surge was driven by Nigerian exports to Niger, which nearly doubled to N82.38 billion in 2024. Imports from Niger also grew from N3.97 billion to N9.53 billion.
Nigeria’s economic ties with Burkina Faso and Mali also saw significant fluctuations.
Burkina Faso: Trade rose 41.4%, from N12.92 billion in 2023 to N18.26 billion in 2024.
Mali: Total trade surged from N12.57 billion in 2023 to N199.21 billion in 2024, with imports from Mali skyrocketing from N269.87 million to N183.79 billion.
The rise in trade coincides with the formation of the Alliance of Sahel States (AES) by Niger, Burkina Faso, and Mali, following their withdrawal from ECOWAS.
ECOWAS Moves to Counter Sahel Alliance
In response to growing instability, ECOWAS activated its standby military force to combat terrorism in the region. Nigeria’s Minister of Defence, Abubakar Badaru, emphasized the need for regional security cooperation.
Dr. Abdel-Fatau Musah, ECOWAS Commissioner for Political Affairs, confirmed that despite the departure of Niger, Burkina Faso, and Mali, free movement of goods and people would continue across the region.
