Public Management

Benin govt takes measures to regulate the informal oil industry

Benin govt takes measures to regulate the informal oil industry
Tuesday, 03 October 2023 16:57

Following the tragedy that claimed the lives of more than 34 people in a smuggling oil depot in Seme-Krake on September 23, the government of Benin has announced several measures to ensure that such a thing never happens again.

As part of this plan, government spokesman Wilfried Léandre Houngbédji has indicated that the State has ordered more than 5,000 mini-stations, which will be distributed for free to those engaged in illegal oil activities. “2,000 mini-stations of the 5,000 ordered have already been purchased. They will serve at least the five major cities in the south of the country. The number of cities covered will grow with the acquisition of the remaining stations,” the spokesperson explained, adding that the measure is aimed at reducing the risks associated with the sale of adulterated petroleum products.

Chinese platform Xinhua reported that the informal oil industry directly costs the state CFA20 billion a year (equivalent to $32 million), with the informal sector alone accounting for between 75 and 80% of the volume of fuel sold on the territory.

In addition to the tax losses, the human damage is just as significant. The fire on Saturday, September 23 at a contraband fuel depot in Sèmè-Kraké left 36 people dead and 23 with severe burns, according to the latest official figures. The smuggled fuel depot in Sèmè-Kraké is the largest in the city, where the trade is widespread. The government estimates that 540,000 people are involved in this sector.

Given the weight of this industry in the economy, the government believes it is imperative to regulate it. In a recent report on the links between violent extremism and illegal activities in the country, the ISS revealed that the illegal oil trade, commonly known as "Kpayo", enables armed groups to obtain fuel for their means of transport and to derive substantial revenue from this traffic. A situation that would leave the country exposed.

Indeed, long spared by terrorist assaults, Benin has suffered a series of attacks, including two in 2020, at least 7 in 2021, more than 20 listed in 2022, and 15 already since 2023 started.

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
CEMAC non-performing loans fall to 16.0% in 2025, BEAC says Lending rises 10.7% despite tighter liquidity and higher borrowing costs Growth,...
Investec secures $200 million IFC loan for green housing finance Funds to support eco-buildings, affordable green home loans in South...
“Keur Samba” securitization bonds begin trading on the BRVM Operation backed by NSIA Banque CI and Orabank CI totals CFA52 billion Move aims...
Witti Finances Holding acquired a majority stake in Kajas Microfinance, entering the Senegalese market. The firm rebranded the entity as Witti...
Most Read
01

EBID aims to allocate nearly 41% of its commitments to environmentally and socially impactful projec...

EBID Charts Green Shift to Finance West Africa’s Growth
02

Flutterwave secures Nigerian banking license to offer credit and savings License enables direct d...

Flutterwave Secures Banking License in Nigeria, Joining Push by Fintechs Like Revolut, Wise
03

BCEAO mandates all financial institutions to complete integration Move aims to ensure seamless, i...

BCEAO Imposes June 30 Deadline to Complete Instant Payments Integration
04

M-PESA evolves into major financial platform with 35 million users Telecoms, fintechs expan...

In Africa, Banks Face a New Rival: Telecom Operators
05

This week, Africa’s health outlook is shaped by mounting supply chain risks tied to global tensions,...

Weekly Health Update | Africa Faces Health Supply Risks; DRC Ends Mpox Emergency
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.