On the road connecting Niger’s capital, Niamey, to Zinder, the country’s southern hub, a notable change has occurred. The once prevalent illegal warehouses and bold smugglers trying to sell petrol to passing cars have vanished from sight.
The reason behind this transformation is severe shortages in Niger’s thriving black market, fueled by supplies from neighboring Nigeria, a major economic power and one of the world’s leading oil producers. Following the Nigerian government’s decision to abolish petrol subsidies at the end of May, prices tripled in Nigeria, impacting the cross-border smuggling activities into Niger.
In Niamey, residents of the suburbs can no longer witness the dramatic confrontations between customs officers and street vendors attempting to sell smuggled petrol. Even the constant flow of cars and motorbikes laden with fuel containers crossing the border under the noses of customs officers has come to a halt, according to Adamou Guéraou, the mayor of Dan-Issa commune, the entry point for smugglers in southern Niger.
Before Nigeria’s subsidy removal, a liter of petrol on Niger’s black market fetched between CFAF 250 and CFAF 275 (€0.38 and €0.40). Presently, the prices range from 550 FCFA to 700 FCFA (€0.83 and €1.05), surpassing the pump price of 540 FCFA (€0.83).
Despite Niger producing around 20,000 barrels of refined petrol and diesel per day since 2011, the scourge of smuggling has caused the country to lose substantial revenue amounting to “billions of CFA francs” (several million euros), as reported by the authorities.
The current scarcity on the black market has triggered a rush to the limited number of service stations, particularly in areas close to Nigeria, such as Zinder, Maradi (south), Tahoua, and Dosso (southwest), which heavily rely on smuggled petrol.
The situation has left many vendors, like Dari Amadou, frustrated, as they can no longer profit from selling petrol obtained through smuggling. Ilia Mahamadou, another vendor and a father of four, expresses concern about the bleak future and the potential drying-up of their main source of income.
Apart from the economic repercussions, there are concerns about the impact on the funding of armed jihadist groups in the Sahel region.
A recent report from the United Nations Office on Drugs and Crime (UNODC) suggests that fuel smuggling from Nigeria may be financing terrorist groups through levies and taxes imposed during transit and storage in areas under their control.
As the black market stocks dwindle, the demand at official petrol stations increases, according to Bio Abdourahamane, head of communications at the Société nigérienne des produits pétroliers (Sonidep). Fortunately, Sonidep has managed to meet the current high demand by utilizing its reserves and those of the sole refinery located in Zinder.
To avoid a general shortage in the future, Sonidep acknowledges that they may need to make arrangements, such as purchasing petrol from elsewhere or maximizing production at the Zinder refinery.
The end of petrol subsidies in Nigeria has already had direct impacts on the lives of millions of Nigeriens. Transport fares have increased, especially on routes leading to Nigeria, where petrol has become scarce. The rise in transportation costs has also affected freight charges and commodity prices, causing economic strain for many.
In Zinder, the cost of motorbike taxis and motor tricycles, the primary means of transportation, has risen. Additionally, in N’Konni, a town on the Nigeria-Niger border, economic activities have slowed down due to the turmoil in the once-thriving black petrol market.
The fuel smuggling networks have provided a lifeline for thousands of young people, and the potential disappearance of this activity could have adverse consequences, with some individuals possibly turning to delinquency as a result, warns Abdoul-Wahab Soumana, a socio-anthropologist, and lecturer at the University of Zinder.
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