What Happened: Nigerien oil arrived at the Beninese oil terminal of Seme using the Niger-Benin pipeline on April 21, Africanews reported on April 24.
Why It Matters: The Niger-Benin pipeline’s entry into service will enable Niger to begin exporting up to 90,000 barrels of oil per day in the coming months, which will provide the country with a much-needed source of hard currency. Niger is set to use its newfound oil revenue to clear outstanding debt payments and boost military expenditure, including through new equipment purchases, to curb the expansion of jihadist attacks witnessed in recent years. Niger’s oil exports will also benefit Benin, which is due to receive transit duties and tax revenues on the pipeline’s activity.
Background: The Niger-Benin pipeline connects Niger’s eastern Agadem Rift Basin to Benin’s Seme port and was built by Chinese oil giant China National Petroleum Corp., or CNPC. CNPC’s construction of the pipeline is part of the company’s broader investments into Niger’s oil sector, which are set to increase the country’s oil output from 20,000 bpd to 110,000 bpd in the coming months. CNPC agreed to advance Niger $400 million for the purchase of its crude oil earlier in April.