Niger's Oil Dreams Stalled by Internal Unrest and Diplomatic Feud

A China-backed pipeline intended to transform Niger into an oil-exporting nation faces significant hurdles, including internal rebellion and a diplomatic clash with Benin. These issues stem from a coup that ousted Niger’s democratic government last year. The disruption has severely impacted the nation's economy and regional stability.

A China-backed pipeline aimed at turning Niger into an oil-exporting power is facing severe challenges due to internal unrest and a diplomatic conflict with neighboring Benin. These problems arise from last year's coup that toppled Niger's democratically elected government.

The 1,930-km pipeline, stretching from Niger's Chinese-constructed Agadem oil field to Benin's port of Cotonou, was poised to increase Niger's oil production fivefold through a $400 million deal with China's state-run petroleum company. However, the project faces delays amid a diplomatic row with Benin, which led to the pipeline's closure last week.

Niger's burgeoning alliance with Russia, contrasted by Benin's alliance with France, adds a new layer of geopolitical complexity. The situation deteriorated when Benin imprisoned three Nigerien oil workers, causing Niger to shut the pipeline. The disruption hinders Niger's economic aspirations, deepening financial and regional stability woes.

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