The Nigeria Customs Service (NCS) has indicated that the ongoing smuggling of petrol across the nation’s borders, even after the fuel subsidy removal, is primarily due to the price differences in neighbouring countries.
The Comptroller General of Customs, Adewale Adeniyi, shared this insight during the service’s first quarter performance briefing in Abuja.
He noted that despite the elimination of the fuel subsidy, the price dynamics continue to make it lucrative for smugglers to illegally transport fuel from Nigeria.
This situation has rendered the smuggling of fuel particularly appealing to those engaged in such activities.
He further explained that although Nigeria has abolished its subsidy system, the comparatively lower pump price still encourages the illegal exportation of Premium Motor Spirit to countries such as Cameroon, Niger, and the Benin Republic.
“The fuel has remained profitable due to the price arbitrage,” he noted.
He noted that while the price of PMS in Nigeria fluctuates between ₦880 and ₦950 per litre, it is priced at ₦1600 to ₦2000 per litre in Cameroon, Niger, and the Benin Republic.
Adeniyi highlighted that this considerable price disparity perpetuates smuggling activities, despite some of these nations experiencing minor decreases in domestic fuel prices.
“While the price of the products is coming down to around ₦850 and ₦900 per liter in places like Cameroon, it is close to ₦2,000 per liter, in Niger, it is ₦1,600 per liter, and the same with the Benin Republic,” the Customs Boss noted.
Adeniyi stated that the NCS has initiated a special anti-smuggling operation to address the situation.
“This arbitrage provides the incentive. That is why we launched the operating Whirlwind,” he said.
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