Nigerian Petrol Smuggled into West African Markets Now Selling for N1,700 per Litre
— The Federal Government has raised alarms over the resurgence of petrol smuggling activities, attributing the uptick to the substantial price disparity between Nigeria and its neighboring countries. Currently, smuggled Nigerian petrol is being sold for as much as N1,700 per litre in West African markets.
During a press briefing in Yola, the Comptroller-General of the Nigeria Customs Service, Adewale Adeniyi, emphasized the urgency of addressing this issue, especially in light of recent price hikes in neighboring countries. The average price of petrol in Nigeria is approximately N701 per litre, significantly lower than the average rate of N1,787 per litre in neighboring countries. This disparity has spurred increased smuggling activities.
Adeniyi announced the strategic response to this challenge, highlighting the collaboration with the Office of the National Security Adviser (NSA) through the newly launched Operation Whirlwind.
“Today, we are here to update members of the public on the strategic efforts of the Nigeria Customs Service in addressing the critical issue of fuel smuggling through the recently launched Operation Whirlwind, under the auspices of the Office of the National Security Adviser,” Adeniyi stated.
He pointed out that about a year ago, the Federal Government removed the fuel subsidy, a decision aimed at redirecting funds to other productive sectors and reducing pressure on foreign exchange reserves. Despite the resultant price increases, fuel prices in Nigeria remain the cheapest in the West and Central African region.
“While PMS is sold at an average of N701.99 in Nigeria, it is sold at an average of N1,672.05 in the Republic of Benin and N2,061.55 in Cameroon. In other countries around the region, the price of PMS ranges from N1,427.68 in Liberia to N2,128.20 in Mali, averaging N1,787.57, according to the fuel price data obtained from open sources,” he elaborated.
Adeniyi also highlighted alarming discrepancies in fuel evacuation patterns, particularly in border states. For instance, Borno and Kebbi states recorded 76% and 59% increases in evacuations between April and May 2024. On a year-on-year basis, Sokoto and Taraba states saw increases of 247% and 234%, respectively. These discrepancies suggest a high likelihood of smuggling activities.
In response, the NCS, in collaboration with the NSA, initiated Operation Whirlwind to combat fuel smuggling. The objectives of the operation are to ensure that Nigerians benefit fully from fuel price deregulation, defend the national currency, dismantle smuggling cartels, and raise awareness among local communities.
“Our efforts are focused on ensuring that Nigerians enjoy the full benefits of fuel price deregulation in line with President Bola Tinubu’s vision. We aim to defend the national currency, reduce pressures from smuggling activities, dismantle smuggling networks, and raise awareness among local communities,” Adeniyi asserted.
As the Nigerian government intensifies its efforts to curtail fuel smuggling, the success of these initiatives will be crucial in stabilizing domestic fuel prices and ensuring that the economic benefits of deregulation are fully realized.
