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How Subsidy Removal, Tension Worsened Niger’s Fuel Scarcity - Politics - Nairaland 6t3459

How Subsidy Removal, Tension Worsened Niger’s Fuel Scarcity (8913 Views)

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TimeManager(m): 9:36am On Mar 17
Less than two years after President Bola Tinubu removed the fuel subsidy in Nigeria, the effect of the decision is now being felt deeply by neighbouring Niger Republic.

Also, findings by THE PUNCH on Sunday from fresh data sourced from the National Bureau of Statistics indicated that trade between Nigeria and Niger Republic surged by 82 per cent in 2024 despite ongoing diplomatic tensions between the two countries.

This came as oil dealers raised concern about the closure of filling stations at border towns, stressing that marketers were losing so much revenue due to the development.

Since the start of March, Niger Republic has been grappling with an unprecedented shortage of the most widely used petrol in the West African country.

Economic activities were brought to a halt as filling stations in Niamey, the capital, and those in other towns ran out of petrol recently.

For several years, the country depended majorly on Nigeria for about 50 per cent of its local fuel consumption, industry players and experts confirmed. Petrol was usually smuggled into the neighbouring country through illegal routes.

However, since President Bola Tinubu’s istration removed the fuel subsidy in 2023, the price of petrol skyrocketed, making the smuggling of the product unattractive to illegal traders in border areas.

Aside from Niger, countries like Benin Republic and Togo were also beneficiaries of Nigeria’s petrol subsidy which stopped immediately after Tinubu took over on May 29, 2023.

The removal of subsidy and the attendant rise in the price of petrol has mounted pressure on Niger’s refinery, which can only produce a few tankers of fuel per day.

The Commercial Director of the state-owned Nigerien Company for Oil Products (Sonidep), Maazou Oumani Aboubacar, confirmed that half of the country’s consumption used to come from Nigeria until this was halted by the current istration.

Aboubacar told AFP that the Soraz refinery in Zinder is the only one in the country, saying it “can no longer satisfy domestic demand,” which has surged for more than a year now.

The reason is principally down to the drying up of the flourishing black market supplied from neighbouring Nigeria, a major global producer. It was learnt that the country’s refinery only provides Sonidep with “25 tanker trucks of petrol a day” when the daily national requirement is up to twice that.

Domestic consumption was said to have been boosted by a cut in fuel prices introduced by the military regime that seized power in Niger in 2023. The official stated that two years ago, prices tripled after the Nigerian President ended costly fuel subsidies.

“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 was quoted as having said.

With Nigerian smugglers supplying up to 50 per cent of the country’s daily petrol consumption up till 2023, the country’s refinery was producing a little to augment the supply from Nigeria.

However, the country faced the reality after Tinubu declared that “the fuel subsidy is gone” and tightened up the borders

“Let them get more from us. I am confident that gradually they will come back to ECOWAS because they do not have enough resources to import food to sustain their citizens,” the source added.

Reacting, oil marketers said although they were not aware of the deal, the export of 300 tankers to Niger Republic would amount to about 13.5 million litres of petrol. It was calculated that 300 of 45,000-litre capacity trucks are about 13.5 million litres of petrol to be exported to the Niger Republic.

The dealers, however, stated that Nigeria had enough to save the junta-led country from the current fuel crisis rocking it. According to marketers, Nigeria may have ed the days of fuel scarcity as it now has the Dangote refinery, the Port Harcourt refinery, and others producing fuel locally even as importers bring more from other countries.

The National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, said he was aware of the fuel crisis in Niger Republic, adding that Nigeria had enough to bail out the country.

“I will not say we don’t have that capacity with the refineries we have in the country. I think we have enough to supply Niger Republic,” the IPMAN Vice President said

Similarly, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, agreed that the country had enough PMS to help its neighbours without running into any crisis. “If we have a diplomatic reason for that, it is doable,” Gillis-Harry asserted.

It was further gathered that the fuel crisis in Niger may have also been self-inflicted after a confrontation between the ruling junta and Chinese oil companies which had long dominated the country’s petroleum sector.

A security analyst, Zagazola Makama, in an article he published on X, revealed that trouble began in March 2024 when the China National Petroleum Corporation granted the Nigerien government a $400m advance, using future crude oil deliveries as collateral.

The deal was to help Niger cope with crippling economic sanctions imposed by the Economic Community of West African States following the July 2023 coup in the country. However, when it was time to repay the debt, the junta was cash-strapped.

Instead of negotiating, the military rulers were said to have decided to strong-arm China, slapping an $80bn tax demand on Soraz (Zinder Refinery Company) despite the state-owned oil company, Sonidep already owing Soraz a staggering $250bn.

According to Makama, when China refused to provide additional loans, the junta retaliated by expelling Chinese oil executives from the country and seizing Soraz’s bank s. The decision was said to have backfired and led to the collapse of Niger’s petroleum sector, which is heavily reliant on Chinese expertise and investment.

https://punchng.com/how-subsidy-removal-tension-worsened-nigers-fuel-scarcity/?

2 Likes 1 Share

TimeManager(m): 9:37am On Mar 17
Niger's Military Junta led by Tchiani reminds me of Nigeria's oppositions. They think they know better than Tinubu, but when reality dawns on them they will come back begging him. Governance is not through social media, media attacks, misplaced anger or propaganda against the Government, it requires critical thinking and systematic implementation.


Instead of negotiating, the military rulers were said to have decided to strong-arm China, slapping an $80bn tax demand on Soraz (Zinder Refinery Company) despite the state-owned oil company, Sonidep already owing Soraz a staggering $250bn.

This Military dictator is a foolish guy, you can imagine him sanctioning and expelling his creditors rather than dialogue with them. And he knows that his country is short of expertise that could refine crude oil. This is why Military are not fit for istrative leadership, they lack the acumen. But these gun-toting Illiterates force themselves on the country unconstitutionally.
I wonder why he did ask Putin for help but sneaked into Nigeria to prostrate before Tinubu.



-Kiss the truth!

35 Likes 6 Shares

helinues: 9:48am On Mar 17
They should first bow on their knees before we can listen to them

Small yansh wan dey shake

Their Nigerian naturalized ers have carried their bad luck enter Niger.

41 Likes 6 Shares

id4sho(m): 10:05am On Mar 17
Niger republic functional refinery is down because of debt btw china and Niger 🤷

4 Likes

sanerugwei: 10:05am On Mar 17
Another lamba, another lie... another propaganda...
Between June 2023 and Nov 2024, NNPC has reported payment of about 10 Trillion in subsidy or its baptismal name called under-recovery... Tell me is shamsudeen, sorry subsidy really gun/gone?

Coming to the matter, for smuggling of 4.5million liters of petrol you need at least 100 tankers of 40,000 liter capacity in and out of the borders daily.
tell me, is the border too porous that such tankers can be ing. In fact you need like 200 tankers since a tanker will need like 2 days to make the round trip.

5 Likes 3 Shares

cenaman(m): 10:06am On Mar 17
Tinubu
nairalanda1(m): 10:07am On Mar 17
See how subsidy was guaranteeing 50 percent of niger petrol

We should have removed that thing in 2012 even since 1993 self.

They can now buy our fuel or stop complaining

36 Likes 3 Shares

Wealthoptulent(m): 10:09am On Mar 17
okan wan o ni bale, na dem dey FUEL the T£RRORIST Vehicle... the movement reduced

9 Likes 1 Share

helinues: 10:09am On Mar 17
sanerugwei:
Another lamba, another lie... another propaganda...

Wait, is it that some of you can't come up with superior arguments apart from shouting propaganda upadan

What's propaganda about this news? Did you read and comprehend it sha?

38 Likes 3 Shares

happney65: 10:09am On Mar 17
Read the post.

It is the tension and issue with china that worsened their fuel issue and not Nigeria removing fuel subsidy.

Anyways na them know sha. The Nigerian government of Military Men are an Illegal government. So they can go fvck themselves

2 Likes

nairalanda1(m): 10:09am On Mar 17
sanerugwei:
Another lamba, another lie... another propaganda...

Unfortunately it is very true, especially the smuggling bit.

In 2022,.fuel was 190 in Nigeria, 1000 in Niger..smuggling resulted.

And our fuel consumption was reaching 100 m barrels a day. A lot of that was going to other African countries. Niger and Ghana for example.

Now? We consume 50 million , half of which is refined here and no subsidy paid.

Niger caused their problem by themselves.

28 Likes 2 Shares

Bobloco: 10:09am On Mar 17
sad
Demolaeby: 10:10am On Mar 17
You want someone earning a monthly salary of 33k not to get frustrated and to conceal her frustration. What is 33k for a human being to survive on, and you want the person to be praising and clapping for the government without expressing her hardships?

2 Likes

treatise: 10:11am On Mar 17
TimeManager:
Niger's Military Junta led by Tchiani reminds me of Nigeria's oppositions. They think they know better than Tinubu, but when reality dawns on them they will come back begging him. Governance is not through social media, media attacks, misplaced anger or propaganda against the Government, it requires critical thinking and systematic implementation.




This Military dictator is a foolish guy, you can imagine him sanctioning and expelling his creditors rather than dialogue with them. And he knows that his country is short of expertise that could refine crude oil. This is why Military are not fit for istrative leadership, they lack the acumen but these gun-toting Illiterates force themselves on the country unconstitutionally. I wonder why he did ask Putin for help but sneak into Nigeria and prostrating before Tinubu.



-Kiss the truth!
Putin dey one corner dey wink.

4 Likes

ProudNigerian01: 10:12am On Mar 17
May God help us.

Meanwhile, today is a great man of God's birthday, me in celebrating one of God's gift to this Generation.

Happy birthday Christopher Orji, May God bless and increase you in Jesus name. Amen.

Visit YouTube and search cojim ministry to understand why this man is a blessing to this generation.

3 Likes

KEVIND: 10:12am On Mar 17
Before APC will start with another propaganda.
Let me remind us that Nigeria is the 15th largest producer of Crude oil in the world & Number ONE in Africa.
Niger is not an Oil producing Nation.

Don't use the cost of fuel in Niger to justify the harsh policies of Tinubu govt in the Oil sector

1 Like

TimeManager(m): 10:14am On Mar 17
Try and read, it will do you no harm

happney65:
Read the post.

It is the tension and issue with china that worsened their fuel issue and not Nigeria removing fuel subsidy.

Anyways na them know sha. The Nigerian government of Military Men are an Illegal government. So they can go fvck themselves

For several years, the country depended majorly on Nigeria for about 50 per cent of its local fuel consumption, industry players and experts confirmed. Petrol was usually smuggled into the neighbouring country through illegal routes.


-Kiss the truth!

10 Likes

sanerugwei: 10:15am On Mar 17
Go back and read my argument... this una lamba has been debunks times and again...
Starting from the overinflated daily consumption to the logic of subsidy benefits neighboring nations... What is the work of your Customs and Immigration officers in border control?

Facts are facts... Data is everything... no room for propaganda. How many trucks or jerry cans do you need to smuggle daily to make such impact...
helinues:


Wait, is it that some of you can't come up with superior arguments apart from shouting propaganda upadan

What's propaganda about this news? Did you read and comprehend it sha?

1 Like

aieromon(m): 10:17am On Mar 17
Cause and effect

1. Military takes over power and the first thing on their list is to cut pump price of PMS and AGO.
2. Refinery exists but does not produce enough to fulfill nation's requirements. The balance is smuggled across the Nigerian border.
3. Nigeria removes subsidy and smuggling is no longer lucrative in the border towns. The smuggling business is so big that it s for 50% of the country's daily consumption.
4. Fuel stations record a sudden increase in customer patronage. Prior to this, nobody visited the fuel stations when they could get cheap Nigerian-subsidised PMS from the neighbourhood black market. Unfortunately, fuel stations receive erratic supply from the 20,000 bpd refinery which is not enough to fulfill the nation's requirements.
5. Military government has an ongoing battle with Chinese investors in the refinery, oil mining and pipeline network infrastructure. This has affected regular supply of crude to the refinery as well as plans to upgrade the installed capacity.

https://www.reuters.com/world/africa/niger-orders-three-chinese-oil-officials-out-country-sources-say-2025-03-14/


https://www.youtube.com/watch?v=1oXcSkAy_eg?si=JXGIozA38lSf9cv4

5 Likes 3 Shares

sanerugwei: 10:18am On Mar 17
Do you know how many liters Niger or all those other countries need as daily consumption? Do you know how many truck or millions of jerrycans are need to meet even 10% of those daily needs?
Smuggling may help few communities closer to the border but definitely not an entire nation... So it remains what is ... pure propaganda...

nairalanda1:


Unfortunately it is very true, especially the smuggling bit.

In 2022,.fuel was 190 in Nigeria, 1000 in Niger..smuggling resulted.

And our fuel consumption was reaching 100 m barrels a day. A lot of that was going to other African countries. Niger and Ghana for example.

Now? We consume 50 million , half of which is refined here and no subsidy paid.

Niger caused their problem by themselves.
Abokinmanoma: 10:19am On Mar 17
It was a right decision afterwards removing subsidy

2 Likes

Mathewrichard99: 10:20am On Mar 17
Nigeria government should never accept their stupid plea Incase they come begging to be accepted back so that the Nigeria government can open the borders for their illegal trades. You wouldn't be believe that those times that we all suffered scarcity during Buhari regime, some dealers were loading fuel from apapa to Niger through those neighboring states and were selling almost 4 times the amount it was bought in Nigeria. Many millionaires and billionaires rose up through this dubious economic sabotage means.....same thing will still happen if that borders is flagged open today .....even guns and illicit weapons plus drugs will flow in easily.....





.
TimeManager:
Niger's Military Junta led by Tchiani reminds me of Nigeria's oppositions. They think they know better than Tinubu, but when reality dawns on them they will come back begging him. Governance is not through social media, media attacks, misplaced anger or propaganda against the Government, it requires critical thinking and systematic implementation.




This Military dictator is a foolish guy, you can imagine him sanctioning and expelling his creditors rather than dialogue with them. And he knows that his country is short of expertise that could refine crude oil. This is why Military are not fit for istrative leadership, they lack the acumen. But these gun-toting Illiterates force themselves on the country unconstitutionally.
I wonder why he did ask Putin for help but sneaked into Nigeria to prostrate before Tinubu.



-Kiss the truth!

1 Like

donself9: 10:23am On Mar 17
nairalanda1:
See how subsidy was guaranteeing 50 percent of niger petrol

We should have removed that thing in 2012 even since 1993 self.

They can now buy our fuel or stop complaining



Using Niger Lamentation to justify fuel subsidy removal is one of the dumbest shit to come out from Tinubu govt again

Niger are in pain so what !, have Nigerians gained anything so far, why does Tinubu ers think confirming Nigers are in pain will bring sudden euphoria to Nigerians even when Nigeria nothing is working

All the tariff hike in electricity, tax, bank/network charge and all .... what improvement we don see, it always sound good on text books until Nigeria try it.

1 Like 1 Share

Themandator: 10:25am On Mar 17
TimeManager:


https://punchng.com/how-subsidy-removal-tension-worsened-nigers-fuel-scarcity/?





There is no subsidy on petrol so why are the stations are the border closed?
jospepper(m): 10:31am On Mar 17
We too get gra gra for body... do yanga for them small let them publicly come begging cap in hand.

No be dem the strong mouth the insult us before?
nairalanda1(m): 10:36am On Mar 17
donself9:




Using Niger Lamentation to justify fuel subsidy removal is one of the dumbest shit to come out from Tinubu govt again

Niger are in pain so what !, have Nigerians gained anything so far, why does Tinubu ers think confirming Nigers are in pain will bring sudden euphoria to Nigerians even when Nigeria nothing is working

All the tariff hike in electricity, tax, bank/network charge and all .... what improvement we don see, it always sound good on text books until Nigeria try it.


Well no matter what you think, while tinubu government is useless, subsidy removal was the right thing to do. Sadly

2 Likes

nairalanda1(m): 10:37am On Mar 17
sanerugwei:
Do you know how many liters Niger or all those other countries need as daily consumption? Do you know how many truck or millions of jerrycans are need to meet even 10% of those daily needs?
Smuggling may help few communities closer to the border but definitely not an entire nation... So it remains what is ... pure propaganda...



It isn't.

Subsidy removal is working. The only thing is we should have done it a long time ago.

Doesn't make tinubu government good tho
nairalanda1(m): 10:41am On Mar 17
sanerugwei:
Do you know how many liters Niger or all those other countries need as daily consumption? Do you know how many truck or millions of jerrycans are need to meet even 10% of those daily needs?
Smuggling may help few communities closer to the border but definitely not an entire nation... So it remains what is ... pure propaganda...



Smuggling was helping entire countries. At our expense.

The day I realized it in 2012 was a great day of waking up for me

3 Likes

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