Benin vs. Nigeria

Present day Benin was the site of Dahomey, a West African kingdom that rose to prominence in about 1600 and over the next two and a half centuries became a regional power, largely based on its slave trade. France began to control the coastal areas of Dahomey in the second half of the 19th century; the entire kingdom was conquered by 1894. French Dahomey achieved independence in 1960; it changed its name to the Republic of Benin in 1975.

A succession of military governments ended in 1972 with the rise to power of Mathieu KEREKOU and the establishment of a government based on Marxist-Leninist principles. A move to representative government began in 1989. Two years later, free elections ushered in former Prime Minister Nicephore SOGLO as president, marking the first successful transfer of power in Africa from a dictatorship to a democracy. KEREKOU was returned to power by elections held in 1996 and 2001, though some irregularities were alleged. KEREKOU stepped down at the end of his second term in 2006 and was succeeded by Thomas YAYI Boni, a political outsider and independent, who won a second five-year term in March 2011. Patrice TALON, a wealthy businessman, took office in 2016 after campaigning to restore public confidence in the government.

Benin has a youthful age structure - almost 65% of the population is under the age of 25 - which is bolstered by high fertility and population growth rates. Benin's total fertility has been falling over time but remains high, declining from almost 7 children per women in 1990 to 4.8 in 2016. Benin's low contraceptive use and high unmet need for contraception contribute to the sustained high fertility rate. Although the majority of Beninese women use skilled health care personnel for antenatal care and delivery, the high rate of maternal mortality indicates the need for more access to high quality obstetric care.

Poverty, unemployment, increased living costs, and dwindling resources increasingly drive the Beninese to migrate. An estimated 4.4 million, more than 40%, of Beninese live abroad. Virtually all Beninese emigrants move to West African countries, particularly Nigeria and Cote d'Ivoire. Of the less than 1% of Beninese emigrants who settle in Europe, the vast majority live in France, Benin's former colonial ruler.

With about 40% of the population living below the poverty line, many desperate parents resort to sending their children to work in wealthy households as domestic servants (a common practice known as vidomegon), mines, quarries, or agriculture domestically or in Nigeria and other neighboring countries, often under brutal conditions. Unlike in other West African countries, where rural people move to the coast, farmers from Benin's densely populated southern and northwestern regions move to the historically sparsely populated central region to pursue agriculture. Immigrants from West African countries came to Benin in increasing numbers between 1992 and 2002 because of its political stability and porous borders.

Nigeria's population is projected to grow from more than 186 million people in 2016 to 392 million in 2050, becoming the world's fourth most populous country. Nigeria's sustained high population growth rate will continue for the foreseeable future because of population momentum and its high birth rate. Abuja has not successfully implemented family planning programs to reduce and space births because of a lack of political will, government financing, and the availability and affordability of services and products, as well as a cultural preference for large families. Increased educational attainment, especially among women, and improvements in health care are needed to encourage and to better enable parents to opt for smaller families.

Nigeria needs to harness the potential of its burgeoning youth population in order to boost economic development, reduce widespread poverty, and channel large numbers of unemployed youth into productive activities and away from ongoing religious and ethnic violence. While most movement of Nigerians is internal, significant emigration regionally and to the West provides an outlet for Nigerians looking for economic opportunities, seeking asylum, and increasingly pursuing higher education. Immigration largely of West Africans continues to be insufficient to offset emigration and the loss of highly skilled workers. Nigeria also is a major source, transit, and destination country for forced labor and sex trafficking.

2120 Cotonou Place, Washington DC  20521-2120

The free market economy of Benin has grown consecutively for four years, though growth slowed in 2017, as its close trade links to Nigeria expose Benin to risks from volatile commodity prices. Cotton is a key export commodity, with export earnings significantly impacted by the price of cotton in the broader market. The economy began deflating in 2017, with the consumer price index falling 0.8%.

During the first two years of President TALON's administration, which began in April 2016, the government has followed an ambitious action plan to kickstart development through investments in infrastructure, education, agriculture, and governance. Electricity generation, which has constrained Benin's economic growth, has increased and blackouts have been considerably reduced. Private foreign direct investment is small, and foreign aid accounts for a large proportion of investment in infrastructure projects.

Benin has appealed for international assistance to mitigate piracy against commercial shipping in its territory, and has used equipment from donors effectively against such piracy. Pilferage has significantly dropped at the Port of Cotonou, though the port is still struggling with effective implementation of the International Ship and Port Facility Security (ISPS) Code. Projects included in Benin's $307 million Millennium Challenge Corporation (MCC) first compact (2006-11) were designed to increase investment and private sector activity by improving key institutional and physical infrastructure. The four projects focused on access to land, access to financial services, access to justice, and access to markets (including modernization of the port). The Port of Cotonou is a major contributor to Benin's economy, with revenues projected to account for more than 40% of Benin's national budget.

Benin will need further efforts to upgrade infrastructure, stem corruption, and expand access to foreign markets to achieve its potential. In September 2015, Benin signed a second MCC Compact for $375 million that entered into force in June 2017 and is designed to strengthen the national utility service provider, attract private sector investment, fund infrastructure investments in electricity generation and distribution, and develop off-grid electrification for poor and unserved households. As part of the Government of Benin's action plan to spur growth, Benin passed public private partnership legislation in 2017 to attract more foreign investment, place more emphasis on tourism, facilitate the development of new food processing systems and agricultural products, encourage new information and communication technology, and establish Independent Power Producers. In April 2017, the IMF approved a three year $150.4 million Extended Credit Facility agreement to maintain debt sustainability and boost donor confidence.

Nigeria is Sub Saharan Africa's largest economy and relies heavily on oil as its main source of foreign exchange earnings and government revenues. Following the 2008-09 global financial crises, the banking sector was effectively recapitalized and regulation enhanced. Since then, Nigeria's economic growth has been driven by growth in agriculture, telecommunications, and services. Economic diversification and strong growth have not translated into a significant decline in poverty levels; over 62% of Nigeria's over 180 million people still live in extreme poverty.

Despite its strong fundamentals, oil-rich Nigeria has been hobbled by inadequate power supply, lack of infrastructure, delays in the passage of legislative reforms, an inefficient property registration system, restrictive trade policies, an inconsistent regulatory environment, a slow and ineffective judicial system, unreliable dispute resolution mechanisms, insecurity, and pervasive corruption. Regulatory constraints and security risks have limited new investment in oil and natural gas, and Nigeria's oil production had been contracting every year since 2012 until a slight rebound in 2017.

President BUHARI, elected in March 2015, has established a cabinet of economic ministers that includes several technocrats, and he has announced plans to increase transparency, diversify the economy away from oil, and improve fiscal management, but has taken a primarily protectionist approach that favors domestic producers at the expense of consumers. President BUHARI ran on an anti-corruption platform, and has made some headway in alleviating corruption, such as implementation of a Treasury Single Account that allows the government to better manage its resources and a more transparent government payroll and personnel system that eliminated duplicate and "ghost workers." The government also is working to develop stronger public-private partnerships for roads, agriculture, and power.

Nigeria entered recession in 2016 as a result of lower oil prices and production, exacerbated by militant attacks on oil and gas infrastructure in the Niger Delta region, coupled with detrimental economic policies, including foreign exchange restrictions. GDP growth turned positive in 2017 as oil prices recovered and output stabilized.

Benin's telecom market is restricted by poor fixed-line infrastructure; low use of fixed-line voice and Internet; mobile networks account for almost all Internet and voice traffic; progress on fiber infrastructure through World Bank and the government investment to extend broadband and develop Smart Government program; monopolized fixed-line Internet services access is limited; ICT development will provide telecom services to 80% of the country, mostly via mobile and DSL infrastructure; Benin Smart City construction has begun; improved international Internet connectivity supports growth of m-commerce and m-banking; submarine cable connectivity from African coast to Europe (2021)

one of the larger telecom markets in Africa subject to sporadic access to electricity and vandalism of infrastructure; most Internet connections are via mobile networks; foreign investment presence, particularly from China; market competition with affordable access; LTE technologies available but GSM is dominate; mobile penetration high due to use of multiple SIM cards and phones; government committed to expanding broadband penetration; operators to deploy fiber optic cable in six geopolitical zones and Lagos; operators invested in base stations to deplete network congestion; submarine cable break in 2020 slowed speeds and interrupted connectivity; importer of phones and broadcast equipment from China (2020)

the International Maritime Bureau reports the territorial and offshore waters in the Niger Delta and Gulf of Guinea remain a very high risk for piracy and armed robbery of ships; in 2020, there were 98 reported incidents of piracy and armed robbery at sea in the Gulf of Guinea region; although a 24% decrease from the total number of incidents in 2019, it included all three hijackings and 9 of 11 ships fired upon worldwide; while boarding and attempted boarding to steal valuables from ships and crews are the most common types of incidents, almost a third of all incidents involve a hijacking and/or kidnapping; in 2020, a record 130 crew members were kidnapped in 22 separate incidents in the Gulf of Guinea, representing 95% of kidnappings worldwide; approximately 51% of all incidents of piracy and armed robbery are taking place off Nigeria, which is a decrease from the 71% in 2019 and an indication pirates are traveling further to target vessels; Nigerian pirates are well armed and very aggressive, operating as far as 200 nm offshore; the Maritime Administration of the US Department of Transportation has issued a Maritime Advisory (2021-002 - Gulf of Guinea-Piracy/Armed Robbery/Kidnapping for Ransom) effective 9 January 2021, which states in part, "Piracy, armed robbery, and kidnapping for ransom continue to serve as significant threats to US-flagged vessels transiting or operating in the Gulf of Guinea."

the International Maritime Bureau reports the territorial and offshore waters in the Niger Delta and Gulf of Guinea remain a very high risk for piracy and armed robbery of ships; in 2020, there were 98 reported incidents of piracy and armed robbery at sea in the Gulf of Guinea region; although a 24% decrease from the total number of incidents in 2019, it included all three hijackings and 9 of 11 ships fired upon worldwide; while boarding and attempted boarding to steal valuables from ships and crews are the most common types of incidents, almost a third of all incidents involve a hijacking and/or kidnapping; in 2020, a record 130 crew members were kidnapped in 22 separate incidents in the Gulf of Guinea, representing 95% of kidnappings worldwide; approximately 51% of all incidents of piracy and armed robbery are taking place off Nigeria, which is a decrease from the 71% in 2019 and an indication pirates are traveling further to target vessels; Nigerian pirates are well armed and very aggressive, operating as far as 200 nm offshore; the Maritime Administration of the US Department of Transportation has issued a Maritime Advisory (2021-002 - Gulf of Guinea-Piracy/Armed Robbery/Kidnapping for Ransom) effective 9 January 2021, which states in part, "Piracy, armed robbery, and kidnapping for ransom continue to serve as significant threats to US-flagged vessels transiting or operating in the Gulf of Guinea."

talks continue between Benin and Togo on funding the Adjrala hydroelectric dam on the Mona River; Benin retains a border dispute with Burkina Faso near the town of Koualou; location of Benin-Niger-Nigeria tripoint is unresolved

Joint Border Commission with Cameroon reviewed 2002 ICJ ruling on the entire boundary and bilaterally resolved differences, including June 2006 Greentree Agreement that immediately cedes sovereignty of the Bakassi Peninsula to Cameroon with a phaseout of Nigerian control within two years while resolving patriation issues; the ICJ ruled on an equidistance settlement of Cameroon-Equatorial Guinea-Nigeria maritime boundary in the Gulf of Guinea, but imprecisely defined coordinates in the ICJ decision and a sovereignty dispute between Equatorial Guinea and Cameroon over an island at the mouth of the Ntem River all contribute to the delay in implementation; only Nigeria and Cameroon have heeded the Lake Chad Commission's admonition to ratify the delimitation treaty which also includes the Chad-Niger and Niger-Nigeria boundaries; location of Benin-Niger-Nigeria tripoint is unresolved