Despite the elimination of the fuel subsidy in Nigeria, petrol smuggling across the country’s borders remains rampant, according to the Nigeria Customs Service (NCS).
Speaking during the agency’s first quarter performance briefing in Abuja, the Comptroller General of Customs, Adewale Adeniyi, revealed that the ongoing smuggling of Premium Motor Spirit (PMS) is being driven by significant fuel price differences between Nigeria and its neighbouring countries.
“Despite the removal of the fuel subsidy, it is still profitable for smugglers to take fuel illegally from Nigeria. You know that the prices are dynamic,” Adeniyi stated.
While the pump price of PMS in Nigeria currently ranges between N880 and N950 per litre, the same product sells for as high as N2,000 per litre in nearby countries such as Niger, Cameroon, and the Benin Republic. Even in areas where prices have slightly dropped, such as Cameroon, fuel still costs around N850 to N900 per litre, maintaining a significant arbitrage that entices smugglers.
Adeniyi emphasized, “This arbitrage provides the incentive. That is why we launched Operation Whirlwind.”
Operation Whirlwind is a new anti-smuggling campaign launched by the Nigeria Customs Service to tackle the illegal movement of petrol across borders. The agency says it is stepping up surveillance and enforcement as the situation remains a drain on national resources.
The NCS is hopeful that with sustained action and inter-agency collaboration, it can reduce the illegal fuel trade that continues to affect Nigeria’s economy and fuel availability.
