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
Africa-based investors accounted for 30% of active VC players in 2025 Total VC funding reached $3.9 billion across 506 deals Venture debt jumped...
Cameroon will issue the first 15-year OTA in CEMAC on February 17, 2026. The Treasury seeks CFA20 billion to test demand beyond the 10-year...
IFC considers up to $8 million in Aruwa Fund II $50 million fund targets Nigerian, Ghanaian SMEs Focus on women-led firms in underserved...
Vista acquires 99.99% of Saham Assurances Niger Company rebranded as Vista Assurances Niger Deal marks entry into Niger’s small insurance...
Most Read
01

Absa Kenya hires M-PESA’s Sitoyo Lopokoiyit, signalling a shift from branch banking to a telecom-s...

Absa Kenya Imports a Telecom Playbook in Bid to Reinvent Retail Banking
02

Ziidi Trader enables NSE share trading via M-Pesa M-Pesa revenue rose 15.2% to 161.1 billio...

Safaricom launches M-Pesa platform for stock trading in Kenya
03

Deposits grow 2.7%, supporting lending recovery Average loan sizes small, credit risk persists ...

Togo Microfinance: Deposits and Loans Rise Simultaneously in Q3 2025
04

Oil majors expand offshore exploration from Senegal to Angola Gulf of Guinea accounts for about 1...

Gulf of Guinea regains appeal as a key exploration hub for oil majors
05

MTN Group has no official presence in the Democratic Republic of Congo, where the mobile market is d...

DRC Accuses MTN of Illegal Operations, Spotlighting Border Frequency Issues
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.