Niger has signed an agreement with Canadian group Zimar Inc. to build a 100,000-barrel-per-day oil refinery and petrochemical complex in Dosso, southwestern Niger, in a project estimated to require $1.9 billion in investment.

The agreement, signed on August 15, 2026, comes as the landlocked West African country seeks to process more of its crude domestically, reduce dependence on imported refined petroleum products and strengthen its industrial capacity.

New refinery to operate under 16-year agreement

The project will be developed under a public-private partnership using a build-operate-transfer model, under which Zimar will finance and develop the infrastructure, operate the facility for an agreed period and subsequently transfer ownership to the Nigerien state.

Foreign Minister Bakary Yaou Sangaré said the agreement will run for 16 years, comprising three years of construction followed by 13 years of operations. Zimar has four months to secure financing and complete detailed engineering designs, while financial close is expected within 12 months of the agreement’s signing.

The Canadian group specializes in engineering, investment planning and industrial project execution in the hydrocarbons sector.

Project revised after initial 2024 agreement

The refinery agreement follows a memorandum of understanding signed by Niger and Zimar in October 2024.

Niger subsequently ordered a review of the original project plans, resulting in revisions to some refinery specifications before the final agreement was reached.

The project was also redesigned as a conventional refinery, replacing the modular configuration initially envisaged.

Niger seeks to reduce reliance on imported fuel

The new refinery comes as the country faces pressure to increase domestic refining capacity amid rising fuel consumption and recurring shortages of refined petroleum products.

Niger has produced crude oil since the early 2010s and began exporting crude in January 2024, mainly to China. Authorities estimate the country’s oil reserves at approximately 853 million barrels, while the Kafra basin is believed to contain potential resources of about 2.7 billion barrels.

Niger currently operates one refinery, the Société de Raffinage de Zinder (SORAZ), in the southern city of Zinder. The facility began operations in January 2012 and has a processing capacity of 20,000 barrels per day.

The planned Dosso refinery would therefore increase the country’s installed refining capacity fivefold if it reaches its targeted 100,000 barrels per day.

Fuel shortages increase urgency for new refinery

Its refined-fuel market has faced recurring supply constraints following a sharp decline in fuel smuggling from Nigeria after Abuja ended fuel subsidies.

With domestic refining capacity still limited, the disruption has contributed to shortages of products including gasoline and diesel.

Fuel demand has also increased following price reductions introduced by the Nigerien government in recent years, adding pressure to existing supplies and strengthening the case for a second refinery.

The Dosso facility could also eventually supply refined petroleum products to neighbouring countries, potentially creating an additional regional market for Nigerien fuel.

Niger targets greater value from domestic crude

Sangaré said the agreement reflects its ambition to diversify its economic partnerships, process a greater share of its resources domestically and strengthen its industrial base.

Zimar Chief Executive Benjamin Day Marc said the refinery would allow the country to reduce its dependence on foreign fuel supplies by processing Nigerien crude domestically.

If completed as planned, the Dosso project would significantly expand its refining capacity while supporting the government’s broader strategy of capturing more value from its oil resources within the country.