Oil and Gas in Niger: An Overview

1. Introduction

Niger's oil and gas sector is undergoing a major transformation and is positioning itself as an essential driver of the country's economic growth. Historically dependent on agriculture and facing major structural challenges, Niger has recently seen a significant acceleration in its development thanks to the exploitation and, more particularly, the export of its oil resources. This report provides a detailed overview of the current situation of this strategic sector, examining its reserves, production volumes, key infrastructure, the major players shaping it, its contribution to the national economy, and the resulting challenges and opportunities. The analysis highlights the complexity of this energy landscape, where growth prospects are inextricably linked to political stability, security and sustainable resource management.

2. Hydrocarbon Reserves and Production

2.1. Proven reserves

Niger has proven oil reserves estimated at 0.15 billion barrels in 2021, unchanged from 2020. These reserves rank Niger 61st in the world, representing approximately 0.0091% of the global total. Historically, Niger's average between 1980 and 2021 was 0.03 billion barrels, with a peak of 0.15 billion barrels reached as early as 2013. At 2016 consumption rates, these proven reserves could last around 34 years, without accounting for net exports.  

As for natural gas reserves, the data available for Niger are limited and point to very low, even negligible, commercial production. Niger's natural gas production stood at a minimal 0.001 quadrillion Btu in 2023, unchanged from 2022, and the historical average from 1980 to 2023 was 0 quadrillion Btu. This sharp difference in information and activity between oil and natural gas highlights a predominant orientation of Niger's energy sector development toward oil. This concentration on oil means that Niger's economic fortunes and energy security are mainly tied to the global oil market and the stability of its oil infrastructure, which could potentially overlook the diversification benefits that a developed gas sector might offer, particularly in the context of global energy transition trends.  

2.2. Production volumes and trends

Niger's oil production has increased dramatically. While it stood at 13,497 barrels per day (bpd) in 2016 and 6,000 bpd in 2023, the country recorded a "massive increase" of 374.2% in its crude oil production in the fourth quarter of 2024. By March 2025, production had reached 93,000 bpd. This sharp rise is directly linked to the start of large-scale oil exports. The Nigerien government has set an ambitious target of raising oil production to 200,000 barrels per day (Kbopd) by 2026. The World Bank forecasts total oil production of 30 million barrels in 2025, equivalent to approximately 82,191 bpd.  

This spectacular increase in oil production is directly attributable to the commissioning of the Niger-Benin pipeline. The marked difference between the oil production figures (6,000 bpd in 2023 versus 93,000 bpd in March 2025) is explained by the fact that multiple sources explicitly indicate that Niger's robust economic growth in 2024 was "primarily fueled by the start of large-scale oil exports." The Niger-Benin pipeline (NBEP) became operational in May 2024 and is designed to export 90,000 bpd. The March 2025 production figure of 93,000 bpd almost exactly matches this export capacity. This establishes a clear cause-and-effect relationship: the completion and commissioning of the NBEP transformed Niger's oil sector from an industry primarily focused on domestic supply into an export-oriented one, directly driving the sharp rise in production and the economic rebound. This recent development marks a critical turning point for Niger's economy. The country's ability to sustain and further increase its oil production is now inextricably linked to the stable operation and potential expansion of this key export infrastructure, making it a central pillar of its economic strategy.  

2.3. Domestic consumption

Niger's oil consumption was 12,000 barrels per day (bpd) in 2016 and 14,000 bpd in 2014. The Soraz refinery, with a capacity of approximately 20,000 bpd, mainly serves the domestic market by producing diesel and premium gasoline, with any surplus destined for export.  

Table: Niger's Proven Reserves and Oil and Gas Production (Historical and Current)

Indicator	Year(s)	Value	Unit	Source(s)
Oil reserves	2021	0.15	billion barrels
	2016	0.15	billion barrels
	1980	0.00	billion barrels
	Average (1980-2021)	0.03	billion barrels
Oil production	2016	13.497	thousand barrels/day
	2023	6.00	thousand barrels/day
	March 2025	93.00	thousand barrels/day
	2026 target	200	thousand barrels/day
Oil consumption	2014	14.00	thousand barrels/day
	2016	12.00	thousand barrels/day
Natural gas production	2023	0.001	quadrillion Btu
	2022	0.001	quadrillion Btu
	Average (1980-2023)	0	quadrillion Btu

3. Key Infrastructure and Export Routes

3.1. Refineries

Niger's main refinery is Soraz (Société de raffinage de Zinder). Built by the China National Petroleum Corporation (CNPC), it has been operational since November 2011. CNPC holds a 60% stake in the refinery, with the Nigerien government holding the remaining 40%. Its construction cost approximately US$5 billion. The Soraz refinery processes approximately 20,000 barrels per day from the Agadem oil fields, mainly producing diesel and premium gasoline for the domestic market, with any surplus destined for export.  

3.2. Pipelines

The Niger-Benin Oil Pipeline (NBEP), also known as the Niger-Benin Export Pipeline, is a critically important piece of infrastructure. Stretching 1,950 kilometers in total, it is the longest oil pipeline in Africa. The Nigerien section measures 1,275 km, and the Beninese section covers 675 km.  

The pipeline route starts at the Koulélé oil fields in the Agadem rift basin, runs southwest toward the Soraz refinery near Zinder, then continues west before turning south toward Benin, ending at the Port Sèmè-Kpodji offshore terminal, approximately 15 km off the coast near Cotonou. This 20-inch-diameter pipeline includes nine intermediate stations, among them eight pumping stations (six in Niger and two in Benin) and an oil terminal at Sèmè with a storage capacity of 2 million barrels. The offshore export terminal is connected by two parallel 28-inch subsea pipelines with a capacity of 1 million barrels per day.  

The NBEP was built and is operated by the China National Petroleum Corporation (CNPC), with China Petroleum Pipeline Engineering Co., Ltd. (a CNPC subsidiary) as owner. Niger holds a 15% share in the pipeline. The total cost of the NBEP project is estimated at US$7 billion. The capacity of the NBEP and associated facilities is designed to allow total production of 110,000 bpd, of which 90,000 bpd is allocated to export and the remaining 20,000 bpd continues to feed the Soraz refinery. Savannah Energy indicates that approximately 90 Kbopd is currently being transported from CNPC's Agadem PSC area via the pipeline. The initial export capacity of 110 Kbopd leaves spare capacity of up to 20 Kbopd available for other operators. Future plans aim to significantly increase the pipeline's capacity to 300 Kbopd in four phases through the installation of eight additional pumping stations along its route.  

Although the pipeline was officially commissioned in November 2023, with exports initially planned for January 2024, its operation has been marked by challenges. After the resolution of a border dispute between Niger and Benin (mediated by China), exports began in May 2024. However, the pipeline was subsequently shut down after a single shipment and was damaged by a rebel group on June 16, 2024. Fears of further sabotage persist. In April 2024, Niger's military junta obtained a US$400 million advance on its future oil revenues from CNPC. The NBEP is designed to be open to third parties, and the British company Savannah Energy has expressed its intention to use it for its crude oil exports.  

The Niger-Benin pipeline is the main driver of Niger's recent economic rebound and increase in oil production. Its commissioning in May 2024 is directly correlated with the sharp rise in oil production. However, the available information also reveals that the pipeline was shut down after a single shipment and damaged by a rebel group in June 2024, with continued threats of sabotage. This situation highlights a critical dependency: Niger's economic growth now rests heavily on this single, vulnerable piece of infrastructure. CNPC's involvement as builder and operator, along with the prefinancing agreement, further underscores the strategic importance and geopolitical sensitivities surrounding the pipeline, particularly given the post-coup political instability and regional sanctions. The NBEP, while a game changer for Niger's oil exports, simultaneously represents a major point of vulnerability. Its continued operation is subject to internal security threats, regional political dynamics (for example, relations with Benin and ECOWAS) and the influence of its main foreign partner, China. This means that Niger's economic stability is directly exposed to the geopolitical risks associated with this vital export route.

Another major project is the Trans-Saharan Gas Pipeline (TSGP). First proposed in the 1970s, this ambitious project was revived in 2022 by Algeria, Nigeria and Niger. With a planned length of 4,100 km, it aims to carry up to 30 billion cubic meters of natural gas per year from Nigeria, via Niger, to the Algerian coast to supply Europe. However, the project is currently threatened with significant delays, or even cancellation, because of the 2023 coup in Niger and the sanctions that followed. Even before the military takeover, the project faced security risks from jihadist groups in Niger and bandits in northwestern Nigeria. An official of the Nigerian National Petroleum Corporation (NNPC) confirmed that recent developments are already causing delays.  

3.3. Export terminals

The main export terminal for Nigerien oil via the NBEP is the Port Sèmè-Kpodji offshore terminal, located east of Cotonou in Benin. This facility includes an oil terminal with a substantial storage capacity of 2 million barrels. Its connection to the NBEP via high-capacity subsea pipelines (1 million barrels per day) suggests that it can handle significant future increases in export volumes.  

Table: Main Oil and Gas Infrastructure in Niger

Infrastructure	Type	Location / Route	Capacity	Estimated cost	Status	Key details
Soraz Refinery	Refinery	Zinder, Niger	20,000 bpd	USD 5 billion	Operational (since 2011)	JV CNPC (60%) / Niger (40%), fuel production for the domestic market
Niger-Benin Oil Pipeline (NBEP)	Crude export pipeline	Agadem (Niger) to Cotonou (Benin)	110,000 bpd (initial), 90,000 bpd (export), 300,000 bpd (potential)	USD 7 billion	Operational (May 2024), but has experienced shutdowns/damage	Built/operated by CNPC, Niger holds 15%, longest in Africa, essential for exports
Trans-Saharan Gas Pipeline (TSGP)	Gas pipeline	Nigeria-Niger-Algeria	30 billion m³/year	USD 13 billion	Proposed / Delayed	Aims to supply Europe, threatened by the coup and sanctions
Port Sèmè-Kpodji Terminal	Offshore export terminal	Cotonou, Benin	2 million barrels (storage), 1 million bpd (subsea pipeline)	Not specified for the terminal alone	Operational	NBEP arrival point

4. Major Industry Players

4.1. National entities

The Société Nigérienne des Produits Pétroliers (SONIDEP) is Niger's state-owned oil and gas company. Although its exact role in direct exploration and production activities is not detailed in the information provided, it represents the key national entity in the sector. The Nigerien government participates directly in major infrastructure, holding a 40% stake in the Soraz refinery and a 15% share in the Niger-Benin pipeline. The military junta's securing of a US$400 million advance from CNPC on future oil revenues underscores the government's direct financial commitment to, and dependence on, the sector.  

4.2. International companies

The China National Petroleum Corporation (CNPC) is arguably the most dominant international player in Niger's oil sector. It built and operates both the Soraz refinery (with a 60% stake) and the crucial Niger-Benin pipeline. CNPC currently transports approximately 90 Kbopd from its Agadem PSC area via the NBEP. Its extensive exploration activities in the Agadem block took place between 2008 and 2017. The US$400 million prefinancing granted to the Nigerien government reinforces CNPC's deep financial and operational ties to the country's oil exports.  

CNPC's constant and overwhelming presence as builder, operator and often majority owner of Niger's most critical oil infrastructure, the Soraz refinery and, more importantly, the Niger-Benin pipeline, points to a deep strategic relationship. The fact that Savannah Energy, another key player, explicitly plans to use the CNPC-built NBEP for its exports further underscores CNPC's central role. The financial advance provided by CNPC to the Nigerien government also highlights a significant level of financial leverage and partnership. By contrast, the other major international oil companies frequently mentioned in the information are mainly active in Nigeria, which suggests a distinct landscape in Niger. This means that China, through CNPC, has established a dominant and strategic position in Niger's growing, export-oriented oil sector. This deep involvement creates a strong bilateral dependency, in which Niger's ability to monetize its oil resources is closely tied to Chinese investment, technology and operational capabilities. This could have long-term implications for Niger's foreign policy, its economic diversification efforts and its ability to attract investment from other global players, potentially shaping its geopolitical alignment in the energy sphere.

Savannah Energy, a UK-based independent energy company, holds significant license interests covering 50% of Niger's main oil basin. Savannah Energy is actively advancing its R3 East oil development, with plans to reach "first production" of 5 Kbopd, then scale up to 10 Kbopd. This involves building an early production facility (EPF) with a capacity of 10 Kbopd at Amdigh and a 50 km pipeline to connect to the NBEP. The company has identified 146 other potential exploration targets and could launch a well testing campaign on its Amdigh-1, Eridal-1, Bushiya-1 and Kunama-1 discovery wells in the R3 East area by the end of 2025. Savannah Energy explicitly intends to use the NBEP for its future crude oil exports.  

As for the other international oil companies (IOCs), although many major IOCs such as Shell, TotalEnergies, Chevron, ExxonMobil and Nigerian Agip Oil Company are extensively involved in Nigeria's oil and gas sector, the information provided does not indicate their significant operational presence or current exploration/production activities specifically in  

Niger. The focus in Niger remains primarily on CNPC and Savannah Energy.

5. Economic Contribution and Fiscal Landscape

5.1. Contribution to GDP and economic growth

Niger's economy posted robust growth in 2024, expanding by 8.4% (compared with 2% in 2023), with the acceleration primarily fueled by the start of large-scale oil exports and strong agricultural output. The oil sector is expected to contribute significantly to Niger's GDP, with a World Bank report forecasting a 13% contribution. Economic growth is expected to remain relatively high, projected at 7.4% in 2025, supported by the continued expansion of the oil sector, with production reaching 30 million barrels. However, growth is expected to slow in 2026-2027 once oil production reaches full capacity. This sustained growth has had a positive impact on poverty reduction, with the extreme poverty rate falling to 45.3% in 2024, lifting approximately 260,000 people out of extreme poverty. This rate is expected to fall further to 35.8% by 2027.  

Multiple reports from the World Bank and Agence Ecofin explicitly link the "robust growth" and "acceleration" of Niger's GDP in 2024 to the "start of large-scale oil exports." These sources also directly attribute the reduction in extreme poverty to this "sustained growth." This establishes a clear and strong cause-and-effect relationship: the recent commissioning of the NBEP and the subsequent increase in oil exports are the main drivers of Niger's current economic rebound and its early successes in poverty reduction. The oil sector is not merely a source of revenue but has become an essential, almost indispensable engine for achieving macroeconomic stability and social development goals in Niger. This highlights the immense pressure on the sector to perform consistently and the potential severity of any disruption.  

5.2. Government revenues

Despite the oil export boom, government revenues unexpectedly fell in 2024. This decline was primarily attributed to a decrease in tax revenues, particularly trade-related taxes. The resulting budget deficit, combined with a rapid accumulation of debt, led the IMF and the World Bank to jointly downgrade Niger's debt sustainability risk rating from moderate to high. Looking ahead, the budget deficit is expected to approach 3% of GDP by 2027, supported by an expected increase in oil revenues and better expenditure control.  

One observation stands out: while the oil sector is driving GDP growth and contributing to poverty reduction, government revenues paradoxically declined in 2024, leading to a downgrade in debt sustainability. The reason given is a drop in "trade-related taxes." This suggests that the positive fiscal impact of increased oil exports was offset by the broader economic consequences of the 2023 coup and the subsequent ECOWAS sanctions, which severely disrupted trade and other economic activity. CNPC's US$400 million prefinancing further indicates an immediate need for funds despite long-term oil wealth. This highlights a critical nuance in Niger's current situation: the benefits of increased oil production are not translating into immediate, robust government revenues because of external geopolitical pressures and their repercussions on the broader economy. This fiscal vulnerability, despite the oil boom, poses a significant challenge to the government's ability to fund public services and investment, underscoring the complex interplay between resource wealth, governance and regional stability.  

5.3. Employment

Employment in the industrial sector (which includes oil and gas) in Niger accounted for 7.1301% of total employment in 2023. Although this figure encompasses various industrial activities, it provides the most direct indication of the sector's overall contribution to job creation in Niger.  

Despite oil's significant impact on Niger's GDP growth and government revenues, the direct employment figure for the industrial sector (7.1301% of total employment) suggests that the oil and gas sector itself may not be a major direct employer for the general population. This is common in capital-intensive extractive industries worldwide, and it is explicitly mentioned in the context of Nigeria's extractive sector, which contributes only 0.01% of employment. While oil wealth can drive macroeconomic growth and potentially fund social programs, its limited capacity to create direct jobs means that the economic benefits may not translate into widespread employment opportunities. This could exacerbate existing social inequalities and fuel grievances if the wealth generated does not flow through to other sectors or through robust social protection programs, potentially contributing to social instability despite overall economic growth.  

Table: Economic Contribution of Oil and Gas in Niger

Indicator	Year(s)	Value	Unit	Source(s)
GDP growth	2023	2.0	%
	2024	8.4	%
	2025 projection	7.4	%
Oil contribution to GDP	Projected	13	%
Extreme poverty rate	2024	45.3	%
	2027 projection	35.8	%
Government revenues	2024 trend	Decline	(due to lower trade taxes)
Debt sustainability risk	Current	High	(previously moderate)
Employment in industry	2023	7.13	% of total employment

6. Challenges and Risks

6.1. Political instability and security concerns

The 2023 military coup triggered severe international responses, including financial sanctions imposed by ECOWAS and Nigeria's decision to cut off its electricity supply to Niger. These sanctions caused serious hardship in Niger, disrupting livelihoods, exacerbating humanitarian challenges and jeopardizing major infrastructure projects, notably the Trans-Saharan Gas Pipeline (TSGP). The electricity cut caused prolonged power outages in major Nigerien cities. Although economic growth rebounded in 2024 thanks to oil exports, the 2023 growth rate was significantly affected by the sanctions (2.4% in 2023 versus 8.8% in 2024). The coup has also strained the long-standing relations between Nigeria and Niger, which could undermine regional counterterrorism efforts.  

The security landscape in Niger is volatile. Rebel groups, such as the Front Patriotique de Libération (FPL), the Mouvement d'Action pour la Démocratie et le Progrès (MADP) and the Front d'Action pour la Libération (FAL), have carried out incursions, including the kidnapping of Chinese nationals in the Agadem oil block. The Niger-Benin pipeline (NBEP) has been directly threatened, notably by sabotage by a rebel group in June 2024, leading to its shutdown after a single shipment. Jihadist groups in Niger and bandits in northwestern Nigeria pose ongoing risks to the construction and operation of pipelines like the TSGP. The IMF notes that worsening security conditions could further affect economic activity.  

The 2023 coup directly led to ECOWAS sanctions and Nigeria's electricity cut-off, causing immediate economic hardship and disruption. This political instability and the resulting governance vacuum or weakening have, in turn, emboldened various rebel and jihadist groups, leading to direct attacks on critical oil infrastructure like the NBEP and kidnappings of foreign personnel. This creates a dangerous feedback loop: political instability fuels insecurity, which then directly threatens the oil and gas sector, crucial for economic recovery and development. The delays and risks for the TSGP further illustrate how political and security problems can derail long-term strategic projects. The long-term sustainability and growth of Niger's oil and gas sector, and by extension its economic stability, depend deeply on establishing and maintaining political stability and robust security. Without addressing these fundamental issues, the country's oil wealth remains highly vulnerable to disruption, which could undermine its development trajectory and exacerbate existing humanitarian and social challenges.

6.2. Environmental and social impacts

Oil and gas extraction has significant environmental and social consequences. Although most of the detailed evidence comes from the Niger Delta in Nigeria, the patterns of environmental degradation are highly relevant to Niger. Oil spills, waste dumping and gas flaring are "notorious and endemic" in oil-producing regions. These activities lead to severe contamination of groundwater, surface water and soil, destroying crops and aquaculture and killing fish. Mangrove forests, which are vital ecosystems, are particularly sensitive to oil pollution, with 5 to 10% already destroyed in the Niger Delta. Gas flaring contributes to acid rain, further damaging agriculture and aquatic life. Studies in the Niger Delta estimate that 9 to 13 million barrels of oil have been spilled over 50 years, and a UN report suggests that it would take more than 30 years to reverse the damage. The presence of "fumes, wastewater and toxic materials" from mining and oil industries is a concern for local communities in Niger itself.  

Oil extraction often brings significant social challenges. Local communities in oil-rich areas frequently suffer from poverty and underdevelopment because of the unequal distribution of oil revenues. Health problems, including respiratory issues, skin lesions and long-term risks of kidney damage and cancer, are linked to pollution. Livelihoods based on farming and fishing are destroyed by environmental damage. There is often a lack of investment by government and the oil industry in basic social infrastructure such as hospitals, schools and running water. Oil operations can lead to displacement, homelessness and a breakdown of social cohesion. Human rights violations, such as brutalization for raising grievances, threats and arbitrary detention, have been reported in connection with oil company activities. Local communities in Niger also report that they are not sufficiently informed or consulted about projects, and nomadic communities face land grabs without compensation. These grievances can fuel tensions and conflict.  

The most detailed accounts of environmental degradation and severe social impacts come from the Niger Delta in Nigeria. However, one source explicitly confirms that "mining and oil industries in Niger threaten human rights" and that local communities are concerned about "fumes, wastewater and toxic materials." This indicates that similar problems are present in Niger. The similarity of these challenges across resource-rich African nations facing governance problems suggests a systemic risk. Nigeria's historical context serves as a crucial warning: without robust regulatory frameworks, strict enforcement, equitable wealth-sharing mechanisms and genuine community engagement, Niger is highly likely to replicate these negative environmental and social outcomes. The expansion of Niger's oil sector, while economically beneficial, carries substantial inherent environmental and social risks. Failure to proactively implement strict environmental protection measures, ensure transparent and equitable distribution of oil revenues, and uphold human rights could lead to widespread ecological destruction, deepen social inequalities, fuel unrest and ultimately undermine the long-term sustainability and inclusiveness of the country's development.

6.3. Investment climate obstacles

Despite the Niger government's eagerness to attract foreign direct investment (FDI) and its efforts to liberalize the economy and streamline procedures, several significant obstacles persist. Insecurity, notably the presence of violent extremist organizations and general insecurity, is a major deterrent for foreign investors. Infrastructure gaps, such as limited internet, road and energy services, pose significant operational challenges. The small size of domestic markets, bureaucratic delays and high transport costs discourage potential investors. A limited pool of skilled labor, a lack of regulatory clarity and unreliable supply chains further complicate the investment landscape. Finally, fiscal instability, with the drop in government revenues in 2024 and the subsequent downgrade of Niger's debt sustainability risk to high, signals broader macroeconomic instability that can deter investors.  

Niger's investment climate is characterized by pre-existing structural weaknesses such as inadequate infrastructure, limited skilled labor and bureaucratic inefficiencies. The recent political instability (coup) and its consequences (sanctions, heightened insecurity) directly exacerbate these challenges. For example, the drop in government revenues caused by sanctions limits the state's ability to invest in improving critical infrastructure. Increased security risks directly discourage foreign capital and disrupt project execution (TSGP delays, damage to the NBEP). This indicates that the challenges are not isolated but form a complex, interconnected web. For Niger to truly leverage its oil and gas potential and attract diversified FDI, it must not only pursue policy reforms but also make substantial progress in resolving the deeper, systemic issues of political stability, security and basic infrastructure development, which currently act as major deterrents for foreign capital.

7. Opportunities and Future Outlook

7.1. Expansion plans and production targets

The Niger government has set an ambitious target to significantly increase oil production to 200 Kbopd by 2026. This is a substantial increase from current levels of approximately 93 Kbopd. The Niger-Benin pipeline (NBEP), although currently operating at 90 Kbopd for CNPC's exports, has an initial export capacity of 110 Kbopd, implying spare capacity of 20 Kbopd. Concrete plans are in place to further expand the NBEP's capacity to 300 Kbopd in four phases through the installation of eight additional pumping stations along its route. This indicates a clear path to higher export volumes.  

Savannah Energy is a key player in this expansion, actively advancing its R3 East oil development. Its plan includes reaching "first production" of 5 Kbopd, then scaling up to 10 Kbopd. The company has identified a significant number of future exploration targets (146 potential targets), suggesting considerable untapped reserves beyond the Agadem block currently in production. Savannah Energy also plans well testing campaigns on its discovery wells by the end of 2025. The World Bank forecasts that Niger's economic growth will remain robust, above 6% in 2025, mainly supported by the continued expansion of the oil sector.  

The government's ambitious production target of 200 Kbopd by 2026, combined with the NBEP's existing spare capacity and its planned expansion to 300 Kbopd, clearly indicates a strong and achievable growth trajectory for Niger's oil sector. Savannah Energy's extensive exploration targets further suggest that Niger's proven reserves may be only the tip of the iceberg, with significant untapped potential. This demonstrates a strategic commitment to leveraging oil resources for national development. Niger is therefore poised for a period of sustained growth in its oil sector, driven by both existing, expandable infrastructure and promising exploration prospects. This represents a substantial opportunity for the country to improve its economic position, increase its revenues and potentially accelerate poverty reduction, provided that the associated risks can be managed effectively.

7.2. Investment potential and policy reforms

The Government of Niger (GON) is eager to attract foreign direct investment (FDI) and has taken deliberate steps to improve its business climate. These efforts include reforms aimed at liberalizing the economy, encouraging privatization and establishing new export processing zones. In 2018, the GON passed a public-private partnership law designed to strengthen transparency and streamline customs and tax procedures. The government has also shown a willingness to negotiate with potential foreign investors on tax and customs matters.  

Beyond oil and gas, Niger offers investment opportunities in various sectors, including mining, agriculture, livestock, telecommunications and general infrastructure. The Nigerien government requires a minimum 10% stake for any private company (foreign or domestic) granted a mining permit in the extractive industry. Although there is no formal investment screening mechanism, the GON conducts due diligence on foreign investors.  

The information clearly describes the Nigerien government's explicit desire to attract FDI and its implementation of policy reforms such as the public-private partnership law. This demonstrates a proactive intention to create a more favorable investment climate. However, the same source simultaneously lists numerous significant deterrents, including insecurity, limited infrastructure, bureaucracy, lack of regulatory clarity and a shortage of skilled labor. This creates a notable gap between the government's policy aspirations and the practical realities and structural obstacles faced by potential investors. The recent coup and its consequences further complicate the picture, as they directly undermine the perception of stability and security that is crucial for attracting and retaining foreign capital. For the country to fully leverage its investment opportunities and achieve diversified economic growth, it must not only pursue policy reforms but also make substantial progress in resolving the fundamental issues of political stability, security and infrastructure development, which are currently major deterrents for foreign capital.

8. Conclusion

Niger's oil and gas sector is going through a period of transformation, marked by a significant increase in oil production and exports in 2024. This momentum is primarily driven by the commissioning of the Niger-Benin pipeline, infrastructure that has become the country's economic lifeline. Largely developed and operated by China's CNPC, it contributes substantially to GDP growth and has initiated a reduction in extreme poverty.

The sector holds immense strategic importance for Niger's economic future. The government's ambitious targets to further increase production and the identification of untapped reserves, notably through Savannah Energy's exploration efforts, signal a trajectory of sustained growth for oil production. The NBEP's expandable capacity reinforces this outlook, offering a clear path to higher export volumes.

However, despite these promising prospects, the sector faces formidable challenges. Political instability, particularly in the wake of the 2023 coup, and persistent security threats from rebel groups directly endanger critical infrastructure and deter investment. In addition, the potential for environmental degradation and significant social problems, as shown by experiences in the wider region, poses long-term sustainability risks. The paradox of rising oil exports alongside falling government revenues due to sanctions highlights the complexity of the fiscal landscape.

Niger's ability to fully harness its oil and gas wealth for inclusive and sustainable development depends on its capacity to overcome these complex challenges. This requires not only continued investment and policy reforms but, more fundamentally, a concerted effort to achieve lasting political stability, strengthen security, implement robust environmental protections and ensure an equitable distribution of the wealth generated for the benefit of all citizens.