The recent removal of fuel subsidies in Nigeria has had a ripple effect on its northern neighbor, Niger, exposing the latter’s vulnerability due to its reliance on informal fuel imports.
For years, Niger relied heavily on fuel smuggled from Nigeria to meet its domestic demand which accounted for approximately 50% of the country’s fuel consumption, especially in regions near the border between the two countries. The fuel was often transported through illegal routes, providing a steady, albeit unofficial, flow of petrol into Niger.
The removal of the longstanding fuel subsidy by the Nigerian government caused domestic petrol prices to surge. This price hike made fuel smuggling less profitable. Consequently, Niger experienced unprecedented fuel shortages, with filling stations in Niamey and other towns running dry, severely hampering transportation and economic activities.
Niger’s sole refinery, the Soraz facility in Zinder, struggled to compensate for the loss of smuggled fuel. The refinery’s limited capacity, producing only about 25 tanker trucks of petrol daily, fell short of the national demand, estimated to be twice that amount. This shortfall led to long queues at the few operational filling stations and inflated black-market fuel prices, exacerbating the crisis.
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The fuel crisis in Niger has had widespread economic and social implications. Transportation costs have soared, leading to increased prices for goods and services. The scarcity has disrupted daily commutes, hindered business operations, and strained public services. Citizens have expressed frustration over the prolonged shortages, urging the government to find sustainable solutions to the recurring fuel supply challenges.
In response, the Nigerian National Petroleum Company Limited (NNPCL) has approved the immediate supply of 300 trucks of Premium Motor Spirit (PMS) to Niger as a strategic move to alleviate the shortage and strengthen diplomatic ties. This intervention aimed to provide temporary relief to Niger’s fuel scarcity while highlighting the interconnectedness of the two nations’ energy policies.
