In an effort to curb the Smuggling of fuel from Nigeria to neighboring countries, the federal government has impounded five fuel tankers and shut down three gas stations located in border areas. Operations by the Nigeria Customs Service (NCS) to combat smuggling have led to a significant drop in fuel supply to border communities. Within just two months, the daily supply has decreased from 32 million litres to around 25 million litres. This equates to 420 million litres of Premium Motor Spirit (PMS), amounting to ₦294 billion, that did not reach the border states during the period due to anti-smuggling measures.
The Nigerian National Petroleum Company Limited (NNPC Ltd) has verified a 21.86 percent decline in fuel shipment to neighboring states. Nigeria Customs Service’s National Public Relations Officer, Abdullahi Maiwada, informed the press that fuel tankers and filling stations that were detained and sealed have been transferred to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for further scrutiny. This is contrary to reports that the tankers were released to members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) under pressure, this information is not accurate.
High fuel prices in neighboring countries promote smuggling.
Adewale Adeniyi, the Comptroller-General of the Nigeria Customs Service, has expressed concern about the increase in petrol smuggling caused by the significant rise in fuel prices in neighboring countries. Adeniyi noted that while petrol in Nigeria costs around ₦701/litre, it is priced at an average of ₦1,787/litre in neighboring countries. This disparity has led to an increase in smuggling activities, posing a challenge for customs officials. It shows that fuel prices in Nigeria are still the lowest in the West and Central African region, even with rising Inflation and economic difficulties for households, especially those with lower incomes.
Such a situation creates an opportunity to profit hugely from smuggling fuel to neighboring countries where prices were significantly higher. This was confirmed by data on the daily distribution of PMS to different regions in Nigeria, as provided by the NMDPRA. He pointed out that the report revealed notable shifts in evacuation trends that cannot be explained by economic or demographic shifts, especially in states that border neighboring countries. Two of the top three states with the highest increases are Kebbi and Borno states which saw a 59% and 76% surge in evacuations between April and May 2024.
Katsina experienced over 50% increases in evacuations.
In May 2023 and May 2024, Sokoto and Taraba states saw significant increases in evacuations, with jumps of 247 and 234 percent, respectively. Meanwhile, border state like Katsina also experienced over 50 percent increases in evacuations. The differences in numbers, combined with the price differences between domestic PMS and neighboring countries, are causing worries about the distribution of PMS and the possibility of smuggling. Adeniyi also mentioned that reliable information about events near the borders supported these doubts.
Furthermore, the spokesperson for the agency denied the allegation that 1,800 stations in border states had been shut down by IPMAN members due to customs anti-smuggling operations. He clarified that the industrial action taken by IPMAN on the 25th of June, 2024, only affected stations in Mubi and Jimeta in Adamawa State, not the entire North-Eastern states as reported. With the help of the State government and NMDPRA, the strike was quickly resolved within just a day. He also mentioned that the NCS collaborated with the Office of the National Security Adviser to address the problem effectively.
Related Article: FG denies dirty fuel import into Nigeria
Abubakar Maigandi, the President of IPMAN, has verified that the group’s members are operating in the region as needed, emphasizing that the association would not tolerate any form of petrol smuggling. During a visit to the NCS Comptroller General in Abuja, the GCEO of NNPC Ltd, Mr. Mele Kyari praised the effectiveness of the NCS’ Operation Whirlwind in curbing smuggling activities. The significant drop in PMS evacuation to border states was a result of this operation. Both organizations promised to enhance their teamwork in maintaining the fight against smuggling across borders, with the goal of achieving Nigeria’s energy stability.