The Beninese National Assembly adopted, on Monday, July 7, 2025, a bill modifying the legal, fiscal and customs regime applicable to the Niger-Benin Export Pipeline (PENB) project.

These adjustments aim to strengthen the legal security of the project partners and to anticipate possible disruptions related to regulatory or international developments.

The new provisions specify that “legislative or regulatory changes that would occur after the signing of the State Guarantee Agreement (AGH) will only apply to project partners under certain conditions.” In the event of damages such as delay, financial loss or violation of contractual rights, the Beninese State will have to take compensatory measures, including “the payment of compensation, the granting of tax benefits or a combination of the two”. This clause is intended to protect investors from unexpected legislative changes that may affect their interests.

In addition, the amendment introduces an injury threshold of one million US dollars to incur state liability. It also extends these mechanisms to the legal consequences of international commitments undertaken by Benin, insofar as they would directly affect project operators. A rigorous definition of “social norms” is also included, excluding measures targeting only pipeline operators when they do not apply in general terms