Fuel Overview

Société nigérienne des produits pétroliers (SONIDEP) is responsible for matching demand and supply for petroleum products in Niger. SONIDEP has depots in Agadez, Diffa, Dosso, Maradi, Niamey, Tahoua and Zinder from which they serve retailers. The total capacity is 52 000m³ and the company is supposed to maintain a security stock of 90 days consumption at all times. The prices for most petroleum products are fixed by the government decree. The current prices have been untouched since January 2013 and there is little risk of any change as there are limited funds to support a further decrease, and limited political capital to sustain an increase. All supply was imported through the ports in Benin and Togo up until 2011 when a refinery was put in operation in Niger which was able to meet the domestic demand. Certain products such as Jetfuel has always been imported. There is a fairly large market for contraband fuel brought in from Nigeria in particular (due to larger subsidies on fuel) and sold openly on the streets. The quality of this fuel is questionable.   

Société de raffinage de Zinder (SORAZ) is a consortium between China National Petrolem Company (CNPC) and the Nigerien state. The former holds 60% and latter 40%. The company manages the refinery that handles oil extracted in Niger. A subsidiary of CNPC called CNPC-Niger-Petroleum SA handles the exploration and extraction side. SONIDEP has a monopoly position for purchases, sales and storage of petroleum products – and is the sole customer of SORAZ. Though the CNPS has succeeded to break the monopoly for export through SORAZ which now has joined right with SONIDEP to export oil products in excess of interior needs. SONIDEP is owned entirely by the Nigerien state. The World Bank orchestrated an effort to privatise the company in 2007, but eventually settled for reforms that would increase accountability and transparency. The distribution at the pump is fully privatised and there are a number of companies operating in Niger including Total, Oriba, Oil Libya and Niger Oil. 

Historically all petroleum products were imported, by SONIDEP, through Benin and Togo. Perhaps surprising no official imports come through Nigeria, Africa’s second biggest oil producer. The reason for which is that Nigeria has heavily subsidised oil products combined with low refinery capacity, and as such is in need to import refined oil products themselves. In 2011 Niger started oil extraction in Agadem in Zinder, and a refinery was established. The latest public available data stems from 2014 were oil production were at 21 000 barrels per day and consumption at 7 000 barrels a day[1], although this was recently. Refinery capacity is about 20 000 barrels a day. As such Niger was able to cover its own demand and position themselves as an exporter. The ambitions were to expand production to 80 000 barrels a day and export 60 000 barrels. For exportation a MoU was signed with Chad, to build a pipeline to connect with the Chad oil pipeline, for this purpose. Instead oil prices fell dramatically and it turned out that SORAZ buys petrol from CNPC at a fixed price at 75 USD which massively increased the company’s debt (thought to be around USD 100 million) to the Chinese company who had also footed the entirety of the investment. Subsequently it was revealed that SONIDEP as SORAZ’ unique client had failed to pay for the petrol and amassed a debt at about USD 68 million. This led to a massive conflict between SONIDEP and SORAZ which culminated in shutdown of the refinery, ostensibly due to a malfunction. And a blockage of exports by truck by CNPC. Subsequently the CNPC succeeded in gaining the right to export refined products through SORAZ, which it in practice controls completely, and the refinery is running again. The supply of the Nigerien demand is however become more complicated. Late 2016 the oil ministry of Ghana[2] declared that they had started export petroleum products to Niger which means that SONIDEP is back to importation to meet domestic demand. Imports will also come through the ports of Cotonou and Lomé where SONIDEP has maintained its presence. Despite these issues SONIDEP has managed to keep the supply open and have so far avoided any major ruptures.

For more information on government and fuel provider contact details, please see the following links:

4.1 Government Contact List

4.7 Fuel Providers Contact List

Information may also be found at: http://www.mytravelcost.com/petrol-prices/ which is updated monthly. 

Fuel Pricing

Fuel prices are set by government decree since 2012. It is a very sensitive issue politically. Decrease of prices will provide a political windfall while increases will lead to mass demonstrations. The current prices have been in effect since January 2013 and there are no indications that the prices will be revised in the near future. Only national refined petroleum products are covered in this fashion, thus jet fuel prices will follow market prices.

The fuel prices have been calculated as follows: SONIDEP has a fixed price of XOF 336 per litre of gasoline from SORAZ. On top of this amount comes a tax (TIPP) of 12% and a value added tax of 19% adding XOF 104.16 to the price. Next comes SONIDEP’s cost covering and profit margin with seven charges totalling XOF 75.92 in combination with fixed and variable (%) charges. Finally there are the fees levied by the retailers that totals at XOF 51.07. When prices last changed, in January 2013, the government reduced the TIPP-tax by three per cent.

Seasonal Variations 

No seasonal variation, nor annual variation for that matter.

Fuel Transportation

Transport of fuel is done by fuel trucks. Most will come out of the SORAZ refinery in Zinder, though imports have restarted through Benin and Togo, and from Ghana.

SONIDEP has a fairly well developed depot structure that has been enhanced recently. They are required to hold 90 days security stock in the depots. In addition the retailer structure is functioning and spread throughout the country, these are also required to hold a security stock of 2 000 litres. For better or worse the black market for fuel is also thriving and would likely increase supply if prices went up as a result of a shortage. In sum current capacity should be able to meet local needs as well as any increase in demand from the humanitarian community.

Standards, Quality and Testing

There are two national testing laboratories that are both under SONIDEP. They can be found in Sorey and in Dosso. The quality of fuel that passes through SONIDEP is of an acceptable standard.

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

The Autorité de Régulation Multisectorelle (ARM) estimates the number of transporters in the country at 3 000, putting the total number of vehicles at about 10 000. The sector is characterised by small scale transporters who are either self-employed or own but a few trucks. There are around 100 larger transporters that have established companies. These will be responsive to tenders and available to contract transport of larger quantities. Sub-contracting individual truckers is common practice. Many, if not most, of the transporters are illiterate and will conduct their business informally. The transport markets are most developed in Niamey and Maradi (the economic capital). The average age of the fleet is estimated to be fifteen years. Old trucks combined with poor road conditions at some stretches means that breakdowns are not uncommon, and spare parts are not always readily available.

Transportation of products which are deemed either strategically important, or dangerous, is handled by Société Nationale des Transports Nigériens (SNTN). This includes transport of hydrocarbons and uranium. 

Road and landside transportation in Niger is managed by the Trade Union of Carriers who will be represented throughout the country. They seek to restrict the access for foreign trucks to conduct internal transportation. In practice this foreign trucks do not load cargo domestically, except for export. For transit to Niger the union has been able to come to terms with their fellow unions in neighbouring countries. Two-thirds of the transport originating from the ports is supposed to be handled by Nigerien registered trucks and this is controlled at border. Truck owners based around the Nigerian border prefer to avoid the hassle by registering their trucks in both Niger and Nigeria. 

There are sufficient supply of truck capacity to meet current domestic needs. Volumes has decreased since the last major drought in 2010-2012 and there should be excess capacity still in the event of an increase of humanitarian needs. In addition transporters are able to bring in more trucks should there be sufficient demand for it.

For more information on transport company contact details, please see the following link:

4.8 Niger Transporter Contact List

The Transporter Contact Details includes details on vehicles and capacities for all transporters assessed by WFP over the last five years.

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

Manual labour is used for loading and unloading. There is extensive use of manual labour also in the construction sector. Most manual labour will have no formal training and take work where they can find it and are paid by the tonnage they move, not hours they work. Manual labourers are not organised in unions, but will organise in teams with a frontman that will rally the necessary number and be the contact person toward the employer. Minimum salary in place in Niger which is fixed at 30 047 XOF per month and unchanged since 2012.  Incidentally, the living wage for an individual in Niger is estimated at minimum 53 200 XOF. The manual labourers bargaining power varies and there is little governmental control. According to a survey by Wage Indicator 34 % reported to receive monthly salaries below the minimum wage[1] – close to 70% in the category where manual labourers fall under.

Manual labourers will hang around markets and can be engaged directly for ad-hoc operations. Manual labourers are normally widely available.  Companies and merchants that have regular need for manual labourers will usually maintain a core team, but not necessarily contracted. When contracts are applied the compensation will usually be linked with a price per weight unit. Manuel labourers expect to be paid in cash on a daily basis and will be quick to lay down work if payments are delayed. WFP engages manual labour through a contracted party. 

The figures below represent the median salary, taking from a survey conducted by WageIndicator in 2012[2] which is the most recent publicly available. The inflation has fluctuate between 2% and minus 2% since, and as such wages will not have changed much[3].   Monthly salaries are estimates as the corresponding group reported working 60, 55 and 50 hour weeks respectively. The wages of manual workers will depend on the quantity manipulated, meaning that peak periods for import and export will be see relatively good wages while calm periods will be relatively poor. 

The telecommunications market was liberated in 2001 and since then four licenses have been granted for mobile services and an additional licence for any ICT service. Further the state owned company SONITEL was partly privatised, but has now and merged with Sahelcom to become Niger Telecom, under government control. The level of competition is good, yet prices have not fallen as much as expected. To get a SIM-card you are required to provide proof of identity. Data plans are available.  

For more information on telecoms contacts, please see the following link: 

4.11 Additional Services Contact List

Telecommunications Regulations

Regulation of telecommunication is under l’Authorité de Régulation des Télécommunications et de la Poste (ARTP). Satellite phones are imported to the country on a regular basis without restrictions. Importation of HF and VHF radios must be declared at the Ministry of Information and Communication. Frequencies are granted by ARTP and they have made available the national strategy for attributing frequencies online[1]. The process is long and requests are often denied.

Existing Humanitarian Telecoms Systems

HF and VHF frequencies are shared by the UN agencies.

Internet Service Providers (ISPs)

Niger Telecoms (Ex-Sonitel) have the biggest infrastructure for fibre optic broadband They have some competition from private companies such as Liptinfor for fibre optic broadband, and TS2 Space, Juch-Tech and SpaceX through satelites. Mobile Network Operators offers internet through the mobile net. Connection can be unreliable and can be down or slow for lengths of time when repairs are needed. Most large businesses will use either Niger Telecoms or Liptinfor. Smaller will make do without or with mobile data.

Mobile Network Operators (MNOs)

The coverage for the mobile networks are around 80% for Airtel, 70% for Orange 70%, 50% for Moov and 40% Niger telecom. MOOV have particularly applied a strategy of being strong in populous areas, and next cover areas that have low coverage by the others. Most networks fairly reliable. Mobile money services are allowed and the business models are being developed and experimented with.

For information on MNOs please visit the GSM Association website.

Staple crops such as millet, sorghum and black eyed beans can be procured on the local markets. There are a fairly large number of wholesalers operating in food items and as provide a competitive market. It is also possible to procure ready-to-eat foods such as plumpy’sup and doz and edible oils through local processing plants. The ability to scale up depends largely on the harvest and the local context. If the humanitarian community needs to scale up foods assistance the odds are that supply has diminished, or that large procurements might increase market prices and decrease overall food security. In such cases regional and international procurement ought to be considered.

Key imports are rice, edible oils, sugar, corn, salt and specialised nutritional foods such as fortified flour (super cereal). Additionally most non-food items, such as tents, pumps, IT equipment etc., will need to imported if the a significant number is required. There is very little industry and manufacturing in Niger. Much of the imports are brought from Nigeria that manufacture a wide array of goods found on the Nigerien market plus Chinese made goods.   

Generic country information can be located from sources which are regularly maintained and reflect current facts and figures. For a general overview of country data related to the service and supply sectors, please consult the following sources:

The Observatory of Economic Complexity – MIT (OEC): https://atlas.media.mit.edu/en/profile/country/ner/

 3.5.1 Niger food suppliers

 3.5.2 Niger Additional Suppliers

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

Overview

The overall service provision level is sufficient enough for an agency to have most of its needs met. Some sectors such as electricity and waste management are not very well developed. The level of financial services is also somewhat limited. 

For other services such as handling, forwarding, transport and more all needs should be covered without any major problems.

For more information on company contact details, please see the following link: 

4.11 Additional Services Contact List

Accommodation

Accommodation cleared by UN security and respecting MOSS standards can be found in all the larger cities in Niger. In Diffa and Ouallam there are guesthouses run by UN agencies, ICRC and ONGs, for the rest of the country there are private owned hotels that meet the standards. Accommodation has not been a major issue in past crisis that saw an important increase in demand. Regional hotels can be full, however, when the government arranges large conferences or rallies.  

Electricity and Power

Power is supplied through NIGELEC which is part state owned and part private owned and the sector is regulated by ANPER-Niger. The main source of power production in Niger comes from coal, gas and fuel turbines. The production is controlled by the government though Nigelec is partly privatised. SONICHAR runs the coal turbine, while Nigelec controls the fuel and gas generators. Local production falls far short of needs despite the feeble level of access (22.7%, representing 9.53% of households[1]). The national grid dose not expand into remote locations. Over 60% of the electricity consumption is imported, most of which comes from Nigeria.

Power outages are a regular feature of life for the households that are privileged with access and particular frequent during the hot season, from March to June. Most outages are fixed the same day, but can be long lasting, particularly if they have their origins in Nigeria. Generators are essential for businesses and organisations in order to function. The voltage supplied is 220 alternating at 50 cycles per second (Hertz).    

Financial Services

There are around ten banks operating in Niger and most will have agencies in the major cities. There is also several companies specialising in money transfer. There is not a large span of services though. Bank fees are relatively high and credit is expensive. Credit card unions are not available, all transactions pass either in cash, checks or bank transfer. There are accounting and audit firms operating in Niger. These have not been appreciated but contact details can be found through the following links: https://www.goafricaonline.com/ne/annuaire/expert-comptable and https://www.goafricaonline.com/ne/annuaire/audit-conseil  

 BIA NIGER

Private sector institution for which the government holds 35% of the shares. Only operations in Niger.

*Basic details for the main office should be shown here, additional contact details for local/regional offices and full contact details for the main office to be included in 4.11 Additional Services Contact List.

Clearing and Forwarding Agents

There are several clearing and forwarding agents. The larger ones includes Bolloré, Damco, CAT Logistics, Matrans and Necotrans. Additionally some of the largest transporters can provide some clearing and forwarding services. The Nigerien head offices will be placed in Niamey, with representation where there are custom offices. Performances will vary, though some forwarders are more reliable than others.    

Handling Equipment

Freight handling equipment is Manutention Africaine Niger is the representative of Caterpiller in Niger. Heavy equipment, including freight handling equipment, can be rented, leased or bought through them. Wooden pallets are available, but the quality is low. WFP prefers to import plastic pallets.

Postal and Courier Services

Niger Poste is the Nigerien postal service. Its services are not always quick or reliable. International couriers such as DHL has representation in the country. Fedex operates through Red Star Express. The sector is regulated by ARTP which also regulates telecommunications.

Printing and Publishing

Publishing and printing services are available. Companies and location can be found in contact list 4.11.

Taxi Companies

Taxies are available in every city. In Niamey these will be Toyota Corollas. In other parts a sort of three-wheel vehicle or motorcycles will be more common. The taxies are not organised in any companies. Each taxi will be owned by particulars that employ a driver. Most taxies will follow a set route picking up passengers along the way, but can also be called. There is no dispatch central so you will need the number of the driver. The overall reliability and security is poor. There are newer cars in circulation that can be relied upon, but in general the vehicles are old and that fact that some can still move is a credit to Niger’s mechanics. The sector is regulated by the ministry of transport. 

Vehicle Rental

Vehicles are available for rent and of sufficient quality and supply that it can meet an organisation’s initial needs.

Waste Management and Disposal Services

Waste management is underdeveloped. The municipalities in the larger cities are responsible for waste management and collecting, though its satisfaction rate is low. A study on waste management in Maradi is fairly representative for the country in general as it sums up the challenges as follows:

Collecting capacity is insufficient, lack of effective sensitization of people, undeveloped and uncontrolled rubbish dumps, lack of gutters and maintenance, and insufficient and unqualified human resources. As to the authorities, they continually denounce the attitude and the behaviour of the citizens on handling waste. The waste evacuation is done by municipal collecting or by depositing in wild rubbish dump. Some people eliminate their waste by burning or duping in the streets or in their houses. According to our investigations, 52% of population evacuates their waste daily. The satisfaction rate of municipal collecting is at 32%[2].

There is no recycling programme in the country unless goats and other livestock salvaging edibles counts.

Waste Disposal-Non-Hazardous

Non-hazardous waste are either burned or put in open landfills. Disposal of food that is unfit for human and animal consumption is either buried or burned. For disposal of food items the authorisation by the by the Police Sanitaire (the regulating agency) is required and the disposal will be done under their supervision.  

Waste Disposal-Hazardous

Hazardous waste is burned and supposed to be buried. The Police Sanitaire are responsible for authorising the disposal and overseeing the process. The process seems to be mostly ad-hoc due to the lack of formalised procedures. Commonly a relatively secluded area is selected, the waste burned with varying effort made to assure the destruction and left as debris.

Treatment of industrial waste is more or less left to the discretion of the company producing it. Rules and regulation are not well developed and enforcement is not in place. Sewage water will in affluent areas be amassed in cisterns and be collected for burying. In less affluent areas of the city there are open sewers.  

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

Waste management and handling is not well developed in Niger. There is little to no awareness of potential hazards, legislation is not well developed and enforcement plans are missing. With regard to sanitation close to 80 % of the population defecate openly. Thrash are discarded wherever and either eaten by goats and cows or burned in small fires at the place.

There is no recycling programme in place. Nonetheless, usable waste will normally be recuperated and put to use. Glass and plastic bottles will for example be re-used for bottling locally produced beverages and nuts. Food and organic material may be used as animal food or turned to compost. E-waste will often be recycled by individual craftsmen. The largest challenge is thus plastic which is in abundance and for which there is no formal or informal recycling.   

4.11 Niger Additional Service Provision Contact List

Waste Disposal - Non Hazourdous

Municipal solid waste is vaguely regulated as part of hygiene legislation (n°93-13, 1993). Specific guidelines on disposal and juridical procedures for the enforcement are absent.

Disposal of perished food stuff is by burning and burying. The sanitary police will need to verify that the food is unfit for human and animal consumption before the act can be carried out.

Waste Disposal - Hazourdous

While there is legislation that address hazardous waste (n°89-24, 1989) it is however incomprehensive (only addresses imported hazardous waste) and there is no enforcement plans in place. For healthcare waste there is no legislation or policies. The same goes for E-waste although there is informal recycling performed by individuals. They will have little to no awareness of health hazards though. 

Treatment of industrial waste suffers from lack of equipment and low funding. The private sector possesses limited equipment and treatment is often only done in wealthier areas where inhabitants can afford the cost. In the less developed areas of the country it is simply dumped where convenient.