The Nigeria Customs Service has explained that petrol smuggling across Nigeria’s borders persists even after the removal of fuel subsidies.
Comptroller General of Customs, Adewale Adeniyi, stated that the significant price difference between petrol in Nigeria and its neighbouring countries continues to make smuggling a profitable venture.
Speaking at the service’s first quarter performance briefing in Abuja on Tuesday, Adeniyi noted, “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.”
He further clarified that although Nigeria has ended its subsidy program, the relatively lower pump price still encourages the illegal export of Premium Motor Spirit to countries such as Cameroon, Niger, and the Benin Republic, adding that this “has remained profitable due to the price arbitrage.”
Adeniyi pointed out that while the price of PMS in Nigeria is between N880 and N950 per litre, neighbouring countries sell the same product at much higher prices, stating, “Is lower compared to around N1600 and N2000 per litre in Cameroon, Niger, and the Benin Republic.”
The Customs boss emphasized that this substantial price difference continues to drive smuggling activities, even though some of these countries have seen slight decreases in their local fuel costs.
“While the price of the products is coming down to around N850 and N900 per liter in places like Cameroon, it is close to N2,000 per liter, in Niger, it is N1,600 per liter, and the same with the Benin Republic.”
In response to this ongoing issue, Adeniyi announced that the NCS has launched a special anti-smuggling operation. “This arbitrage provides the incentive. That is why we launched the operating Whirlwind,” he said.
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