Nigerian Petrol Smuggling Floods West African Markets at N1,700 per Liter.
The Nigerian Federal Government has raised alarms about the resurgence of Premium Motor Spirit (PMS) smuggling due to significant price disparities between Nigeria and neighboring countries. While the average price of petrol in Nigeria stands at about N701 per liter, it is sold at an average of N1,787 per liter in neighboring countries, incentivizing the illegal export of PMS from Nigeria.
Efforts to Combat Smuggling
The Comptroller-General of the Nigeria Customs Service (NCS), Adewale Adeniyi, highlighted the intensified efforts to curb smuggling through the recently launched “Operation Whirlwind” in collaboration with the Office of the National Security Adviser (ONSA). This initiative aims to address the surge in fuel smuggling that followed the removal of fuel subsidies and the subsequent rise in fuel prices.
Economic and Security Implications
Adeniyi emphasized that the disparity in fuel prices between Nigeria and its neighboring countries has created a lucrative incentive for smugglers, leading to a significant increase in the illegal exportation of PMS. This smuggling undermines the economic benefits intended by the removal of the fuel subsidy and threatens national security by potentially funding illegitimate activities.
Operation Whirlwind Successes
Since the launch of Operation Whirlwind, significant strides have been made, including the interception of 150,950 liters of PMS valued at N105,965,391 in various locations across Nigeria within a week. The operation targets illegal exportation, ensuring the availability of PMS within the country, and conserving government resources.
Measures and Strategies
The NCS is implementing several measures to curb smuggling, such as:
Monitoring Fuel Movement: Enforcing strict monitoring of tanker movements to ensure that PMS products are delivered to approved locations.
Collaboration with Licensing Agencies: Managing the proliferation of petrol stations around border areas to prevent the illegal exportation of PMS.
Public Awareness: Raising awareness among local communities to garner support for anti-smuggling efforts.
Impact and Future Plans
The ongoing efforts have already shown results, with credible intelligence indicating a relative stability in PMS prices around border states due to disruptions in smuggling activities. The NCS and its partners remain committed to dismantling smuggling cartels and ensuring that the benefits of fuel price deregulation reach Nigerian citizens. The operation will continue to adapt and enforce measures to tackle the evolving challenges of fuel smuggling.
The Nigerian government’s proactive approach, combined with strategic enforcement operations and inter-agency collaboration, aims to curb the economic and security threats posed by fuel smuggling. The NCS’s efforts underscore the importance of maintaining vigilance and stringent measures to protect the nation’s resources and ensure economic stability.
