The Independent Petroleum Marketers Association of Nigeria (IPMAN) in Adamawa State has issued a stern warning, threatening a potential industrial action against the Nigeria Customs Service (NCS) over the recent seizure and subsequent auction of petrol products in the state. The association argues that the Customs action is detrimental to the state’s Economy and disrupts the legitimate operations of its members. They further claim that the seized products were not smuggled but were legitimately sourced and transported in compliance with all regulations.
In response, the Customs Service, under its Operation Whirlwind initiative, justified the seizure as part of an effort to curb the Smuggling of petroleum products, which they claim has drained Government Revenue and destabilised the market. The seized products were subsequently auctioned to the public at designated filling stations and through jerrycans. This action, however, has ignited a firestorm of Protest from IPMAN, who insist that their members’ livelihoods are being unfairly targeted. Meanwhile, the petrol seized this time involved a notable quantity of petrol, with a Duty Paid Value running into hundreds of millions of Naira.
Marketer officials refuted the Customs claims over the seized fuel.
Yet, the association’s national leadership also refuted the Customs Service’s claims that the seized products were smuggled. They assert that their members possess all the necessary documentation, including receipts and permits, to prove the legitimacy of their purchases. The association argues that the Customs Service has overstepped its boundaries by seizing products from filling stations far from border areas, disrupting the supply chain and causing financial losses to marketers. They contend that the Petroleum Industry Act (PIA) guarantees the free movement of petroleum products within the country and that the Customs’ actions contravene this provision.
Contrary to this, the Customs Service, on the other hand, maintains that its operations are within the law’s ambit and essential to combating the pervasive issue of fuel smuggling. They argue that these smuggled products often cross borders, depriving the government of crucial Revenue and distorting market prices. The Service has emphasised that the seizures were based on intelligence-driven operations and targeted at disrupting sophisticated smuggling networks. The conflicting narratives from both sides highlight the situation’s complexities and the urgent need for a clear and mutually agreeable resolution.
Potential repercussions of the ongoing crisis in the state.
Therefore, this escalating tension has raised concerns about a potential Disruption in fuel supply. IPMAN has issued a deadline, threatening a full-blown industrial action if their grievances are not addressed. Such a strike could severely affect the Adamawa State economy, disrupting transportation, commerce, and daily life. The ripple effects could also be felt in neighbouring states, further exacerbating the situation. The potential for widespread disruption underscores the urgency of finding a peaceful resolution to the current impasse.
Also, the dispute highlights the broader challenges in regulating the petroleum industry and combating smuggling. The porous nature of the country’s borders, coupled with the high demand for petroleum products in neighbouring countries, creates a fertile ground for smuggling activities. Addressing this issue requires a comprehensive approach, including enhanced border security, stricter enforcement of regulations, and collaboration with neighbouring countries. It also necessitates clear communication and engagement with stakeholders within the petroleum industry to ensure that legitimate businesses are not unduly penalised in the fight against smuggling.
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To avert this crisis, a concerted effort is needed to foster dialogue and transparency. Both party leadership should engage in dialogue to address their concerns, review the seizures’ circumstances, and clarify its operational procedures. A joint fact-finding mission involving representatives from both sides could help establish the facts and identify areas of misunderstanding. This process should be transparent, ensuring that all stakeholders have access to relevant information. Furthermore, The Customs Service and the Nigerian Midstream and Downstream Petroleum Regulatory Authority should collaborate to develop a comprehensive framework that balances the need to combat smuggling and facilitate legitimate business operations.