THE Nigeria Customs Service (NCS) has shed light on the continued smuggling of petrol across the country’s borders, despite the elimination of fuel subsidies.
According to the Comptroller General of Customs, Adewale Adeniyi, the practice remained attractive to smugglers due to the stark difference in fuel prices between Nigeria and its neighbouring countries.
Speaking during the service’s first quarter performance briefing held in Abuja, yesterday, Adeniyi noted that “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 explained that although Nigeria has ended its subsidy regime, the relatively lower pump price still incentivizes illegal exportation of Premium Motor Spirit (PMS) to countries like Cameroon, Niger, and the Benin Republic “Has remained profitable due to the price arbitrage”, he added. Adeniyi highlighted that while the price of PMS within Nigeria ranges between N880 and N950 per litre, neighboring countries are selling the same product for far higher amounts. “Is lower compared to around N1600 and N2000 per litre in Cameroon, Niger, and the Benin Republic,” he stated.
The Customs boss went on to stress that this significant price gap continues to fuel smuggling activities, even with some of these countries witnessing slight reductions in local fuel costs.
In response to this ongoing challenge, Adeniyi said the NCS has initiated a special anti-smuggling operation. “This arbitrage provides the incentive. That is why we launched the operating Whirlwind,” he said.
