Niger-Benin Pipeline: deputies adopt modifications to secure investments
The Beninese National Assembly adopted on Monday, July 7, 2025, a bill amending the legal, tax, and customs regime applicable to the Niger-Benin export pipeline project (PENB).
SUMMARY
These adjustments aim to strengthen the legal security of the project partners and to anticipate possible disruptions related to regulatory or international changes.
According to the voted text, legislative or regulatory changes subsequent to the signing of the State Guarantee Agreement (AGH) will apply to project operators only under certain strict conditions.
In the event of damages suffered, such as delays, financial losses or breaches of contractual rights, the Beninese state will have to provide compensatory measures. These can take the form of financial compensation, tax benefits, or a combination of the two.
A minimum damage threshold set at one million US dollars is now required for the state’s liability to be triggered. The law also extends this provision to international commitments undertaken by Benin, as long as they have a direct impact on the activities of the project.
Another major innovation: the definition of “social standards” is now regulated to prevent any discriminatory measure specifically targeting the pipeline operators, if it does not apply generally to the entire territory or economic actors.
During the session, several members of parliament welcomed the government’s approach, emphasizing the need to guarantee investor confidence while preserving national interests. The honorable Hélène Olossoumaï, of the parliamentary group Les Démocrates, however, raised concerns about the potential consequences of these adjustments. In response, the Minister of Justice, Yvon Détchénou, assured that the project had been subject to in-depth discussions with all concerned parties.
A strategic project protected by a clear framework
These legislative changes are part of a dynamic of legal security around a strategic project for the regional economy. The Beninese government thus intends to preserve the attractiveness of the investment framework, while ensuring respect for its commitments to Niger, a key partner in this energy infrastructure.
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