Benin does not produce any oil. Nigeria, our neighbor and biggest trading partner, however, does. In fact, Nigeria is the largest oil producer in West Africa and Benin imports close to 100% of its petroleum from its large, overpopulated neighbor. Talk about being addicted to foreign oil! Much of Benin’s economy is concentrated in what is called the “informal sector”, which means that most people who work do not get a paycheck like we do in the United States with taxes taken out. Instead, employers (and employees) in the informal sector get paid in cash only. Examples are women who walk around and sell food, men who grill meat on the side of the road, women who sell vegetables at the market, and people who sell gas on the side of the road.
Wait, gas? Yes, every city has a thriving informal gas market, brought over illegally from Nigeria and sold in stands on the side of the road. Well, that is until last week when the Nigerian government ended its domestic oil subsidy that kept the price of oil down and affordable for everyone. Protests have erupted in the streets of Nigeria and illegal roadside gas stations have disappeared in Benin since the end of the subsidy last week. Roadside gas in Benin is no longer affordable; long lines are popping up at the few legal gas stations in the country. Roadside gas used to be 300 cfa per liter (about 60 cents), but has now skyrocketed to more than 1,000 cfa per liter (about 2 dollars), almost triple the price of legal gas offered at (likely state-subsidized) gas stations.
You can see how the end of the gas subsidy not only affects Nigerians but Beninese, as well. Add to that rumors of a rumored 35% devaluation in the price of the franc cfa used by 13 countries in the West African Economic Union, and there is a possible disaster on the horizon. My work partner, Arimi, makes 30,000 cfa (or about 60 dollars) each month which supports him, his wife, and small child (his wife also works and makes 20,000 cfa per month, so together they make $100 each month). Gas prices have just tripled, and soon he will make essentially 10,500 cfa less each month if the rumored devaluation happens. The local mayor’s office pays his salary and since the mayor’s office refuses to even give us a $400 marketing budget for this year, I would be surprised if they would increase salaries to make up for the devaluation, if it happens.
So, what will happen to Arimi if the cfa is devalued? Well, with the gas issue I have heard other volunteers complain that their work partners will not go to work until they can afford gas for their motorcycles. Arimi would have to find some way to cut back on expenses, which would be a stretch for a guy who already essentially lives on $1 per day (the other dollar he makes per day goes towards recurring expenses, such as rent, electricity, water, motorcycle upkeep, and, of course, gas). What will it mean for us? The price of transportation has already massively increased. Zemijohn prices have doubled, bush taxi prices have gone up 20%-50%, and it seems as if bus service has declined. Rumors abound that buses are now installing a bench in the aisle of the bus to pack more people in, plus slightly increasing the price of fares, to make up for the difference in gas prices. With more people on the bus, the bus is heavier and more difficult to navigate through the slalom of potholes that litter the main north-south corridor and can cripple a vehicle. I imagine that we will see more bus accidents as they continue to become more and more overloaded with passengers and more difficult to maneuver.
Higher gas prices have also driven zemijohn drivers to literally fight for business: zem drivers have been pushing volunteers off of the back of other zem’s motorcycles to try to literally steal their business. It is not difficult to see the social and economic consequences of the new gas prices and we cannot imagine what will happen if the cfa franc is devalued, as well.
Travel is less safe and more expensive. Crowds swarm to legal gas stations while the thousands of people who once made a little money selling illegal gas now must find another profession. There are no jobs here, no craigslist or monster.com to search for jobs, a poor education system, and shoddy, crumbling infrastructure. It feels like the country is literally falling apart in front of our eyes. But people will find a way to get through it. The roadside sellers of gas might make and sell charcoal instead, or grill meat. People may ride bicycles instead of motorcycles. Without any help from the government, everyone will need to find a way to scrape and save and find money for their next meal. As Arimi is fond of saying to me, “C’est l’Afrique.” That’s Africa.
**Update: Nigeria reinstated their fuel subsidy last week, albeit at a lower rate than it was previously. There are still problems with zem and food prices, but they are becoming part of "normal" life now. Check out this line at the gas station!
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