Less than two years after President Bola Tinubu ended Nigeria’s fuel subsidy, neighboring Niger Republic is facing a severe fuel crisis.
Despite diplomatic tensions, trade between both countries surged by 82% in 2024, according to data from the National Bureau of Statistics. However, the fuel shortage in Niger has worsened, forcing the closure of filling stations and disrupting economic activities.
For years, Niger depended on smuggled Nigerian fuel, which accounted for about 50% of its consumption. The removal of subsidies in 2023 made smuggling unprofitable, putting immense pressure on Niger’s only refinery, Soraz, which cannot meet domestic demand.
The crisis escalated in March 2024, with petrol prices soaring as high as N8,000 per liter in some regions. The situation worsened due to a financial dispute between Niger’s military government and Chinese oil firms, leading to a breakdown in crude supply agreements.
In response, a delegation from Niger sought Nigeria’s help. Despite strained relations, Nigeria approved the export of 300 tanker trucks of about 13.5 million liters of petrol to ease the crisis. Officials suggested this move was strategic, aimed at improving diplomatic ties and negotiations.
Oil marketers confirmed Nigeria’s ability to supply Niger without domestic shortages, citing increased production from the Dangote refinery and others. Meanwhile, experts note that Niger’s economic struggles are partly self-inflicted, following disputes with Chinese investors who dominate its petroleum sector.
Despite the crisis, trade between Nigeria and Niger remains strong, with total trade volume rising to N91.92 billion in 2024 from N50.48 billion in 2023. Nigerian exports to Niger nearly doubled, making up 89.62% of total trade.
As fuel scarcity persists, Niger faces mounting pressure to resolve its energy crisis, either by securing new supply agreements or increasing local refining capacity.