Fuel marketers decry closure of stations at border towns, citizens demand more Nigerian goods
Less than two years after President Bola Tinubu removed the fuel subsidy in Nigeria, the impact of the decision is now being deeply felt in neighboring Niger Republic.
Findings by The Punch on Sunday, citing fresh data from the National Bureau of Statistics, revealed that trade between Nigeria and Niger Republic surged by 82 percent in 2024 despite ongoing diplomatic tensions between the two nations.
At the same time, oil dealers raised concerns over the closure of filling stations at border towns, stressing that marketers were losing significant revenue due to the development.
Since the start of March, Niger Republic has been grappling with an unprecedented petrol shortage, bringing economic activities to a standstill in Niamey, the capital, and other towns.
For years, Niger depended on Nigeria for about 50 percent of its fuel consumption, industry experts confirmed, with petrol often smuggled across the border through illegal routes.
However, the removal of Nigeria’s fuel subsidy in 2023 caused petrol prices to skyrocket, making smuggling unprofitable for traders in border areas. Aside from Niger, countries like Benin Republic and Togo were also beneficiaries of Nigeria’s subsidy before its removal.
Mounting Pressure on Niger’s Refinery
The removal of the subsidy has placed immense pressure on Niger’s only refinery, which produces limited quantities of petrol. The Commercial Director of Nigerien Company for Oil Products (Sonidep), Maazou Oumani Aboubacar, confirmed that half of Niger’s fuel supply previously came from Nigeria.
Aboubacar told AFP that the Soraz refinery in Zinder “can no longer satisfy domestic demand,” which has surged for more than a year. The country’s refinery only provides Sonidep with “25 tanker trucks of petrol a day,” while the national daily requirement is twice that amount.
Niger’s domestic consumption increased after the country’s military regime, which took power in 2023, cut fuel prices. However, the end of petrol smuggling from Nigeria has led to severe shortages.
“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 explained.
The situation worsened after Nigeria’s security agencies launched Operation Whirlwind, a clampdown on fuel smuggling across its borders. The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, noted that Nigeria’s subsidy removal and border security measures have significantly impacted Niger’s fuel supply.
“When petrol was subsidized in Nigeria, neighboring countries benefitted through illegal merchants. Now that the price has risen, smuggling has reduced. Niger and other countries have no choice but to refine or import their petroleum products at market prices,” Ukadike said.
Fuel Prices Soar to N8,000 Per Litre
The scarcity has led to skyrocketing fuel prices in Niger, with reports indicating that a litre of petrol now sells for as high as N8,000 in some parts of the country.
Findings in Sokoto State, which shares a border with Niger, showed varying petrol prices depending on proximity to Nigeria. A transborder businessman, Abubakar Usman, explained that prices escalate the further one moves from Nigeria.
“In Konni, the border town between Nigeria and Niger, a litre of petrol sells for 1,200 CFA (N2,500). In Agadez, it rises to 3,000 CFA (N7,500), and in Arilit, near the Niger-Algeria border, it costs 3,500 CFA (N8,750),” Usman said.
Niger Turns to Nigeria for Emergency Supply
Despite months of diplomatic tensions, Niger Republic has sought Nigeria’s assistance to alleviate the fuel crisis. A delegation of senior officials from the military junta visited Abuja for closed-door discussions with the Nigerian government.
Following negotiations, Nigeria reportedly approved the delivery of 300 petrol trucks—approximately 13.5 million litres—to Niger. A senior Nigerian official, who spoke on condition of anonymity, said the approval was part of a strategic diplomatic move.
“We do not want to blow our trumpet, but we are using this as a bargaining chip in negotiations to bring Niger back into ECOWAS,” the source explained.
Oil marketers confirmed the deal, stating that Nigeria has enough fuel supply to assist Niger without affecting local availability, thanks to increased domestic refining capacity.
The National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, expressed confidence that Nigeria could meet Niger’s needs.
“With the refineries we have, I think we have enough to supply Niger Republic,” Fashola said.
Similarly, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, supported the decision, stating, “If we have a diplomatic reason for that, it is doable.”
China-Niger Dispute Worsens Crisis
Aside from Nigeria’s subsidy removal, Niger’s fuel woes have been exacerbated by a fallout with Chinese oil companies. Security analyst Zagazola Makama reported that in March 2024, the China National Petroleum Corporation granted Niger’s government a $400 million loan, using future crude oil deliveries as collateral.
However, when it was time for repayment, Niger’s military rulers, facing cash shortages, imposed an $80 billion tax demand on Soraz refinery—despite already owing the company $250 billion.
China refused to grant additional loans, prompting Niger’s junta to expel Chinese executives and freeze Soraz’s bank accounts. The move backfired, crippling Niger’s petroleum sector, which heavily relies on Chinese expertise and investment.
Trade Between Nigeria and Niger Surges 82%
Despite the crisis, trade between Nigeria and Niger increased by 82 percent in 2024. Data from the National Bureau of Statistics showed that total trade volume between the two countries rose to N91.92 billion in 2024, up from N50.48 billion in 2023.
Niger’s imports from Nigeria nearly doubled from N46.51 billion in 2023 to N82.38 billion in 2024, accounting for 89.62 percent of total trade between the two countries.
Imports from Niger to Nigeria also rebounded, climbing from N3.97 billion in 2023 to N9.53 billion in 2024. The increase indicates a gradual recovery in economic exchanges despite political tensions.
Over the years, Nigeria has remained Niger’s major trading partner, with exports including petroleum products, agricultural goods, and manufactured items. In return, Niger supplies Nigeria with agricultural produce, livestock, and raw materials.
Looking Ahead
While the emergency fuel supply from Nigeria may provide temporary relief, Niger Republic’s long-term energy security remains uncertain. The country’s refinery struggles to meet demand, while tensions with China have further complicated matters.
For Nigeria, the deal could serve as a leverage point in diplomatic negotiations. However, as the fuel crisis in Niger unfolds, it remains to be seen how both countries will navigate the economic and political challenges ahead.