Smuggled Nigerian petrol, which has been illicitly transported into West African markets, is now being sold at an exorbitant price of N1,700 per litre. This alarming trend has prompted the Federal Government to express serious concerns over the resurgence of petrol smuggling activities, especially in light of the significant price disparities between Nigeria and its neighboring countries.
The average price of petrol in Nigeria stands at approximately N701 per litre, markedly lower than the average rate of N1,787 per litre observed in surrounding nations. This substantial price gap has catalyzed a surge in petrol smuggling, leading to increased black-market activities in recent weeks.
At a press conference held in Yola, the Comptroller-General of the Nigeria Customs Service (NCS), Adewale Adeniyi, underscored the urgent need for a coordinated response to this issue. He emphasized the importance of partnering with the Office of the National Security Adviser (ONSA) to curb this illicit trade.
“Today, we are here to update the public on the strategic efforts of the Nigeria Customs Service in addressing the critical issue of fuel smuggling through the recently launched Operation Whirlwind, under the auspices of the Office of the National Security Adviser,” Adeniyi stated.
Adeniyi recalled the Federal Government’s pivotal decision to remove the fuel subsidy a year ago, a move intended to free up substantial funds for other productive sectors, ease pressure on foreign exchange reserves, and foster economic diversification. While this policy led to an initial spike in fuel prices, it was necessary to align with current economic realities.
Despite the inflationary pressures and financial strain on households, particularly those with lower incomes, fuel prices in Nigeria remain the lowest in comparison to other West and Central African countries. For instance, while petrol is sold at an average of N701.99 in Nigeria, it commands an average price of N1,672.05 in the Republic of Benin and N2,061.55 in Cameroon. Across the region, prices range from N1,427.68 in Liberia to N2,128.20 in Mali, averaging N1,787.57, according to open-source fuel price data.
Adeniyi highlighted disturbing trends from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) report, which indicated significant increases in petrol evacuations in border states without corresponding economic or demographic justifications. Notably, Borno and Kebbi states saw 76% and 59% increases in evacuations between April and May 2024. Year-on-year comparisons revealed Sokoto and Taraba states experiencing a 247% and 234% rise in evacuations, respectively. Border states like Katsina and Kebbi also recorded more than 50% increases. These discrepancies, coupled with the stark price disparity between Nigeria and neighboring countries, raise suspicions about the true destination of the petrol and suggest widespread smuggling.
In response, the NCS, in collaboration with the NSA, has initiated Operation Whirlwind. This nationwide operation aims to ensure Nigerians benefit fully from fuel price deregulation, defend the national currency, dismantle smuggling cartels, and garner local community support to achieve these goals.
“Operation Whirlwind is a multi-faceted approach designed to address the multifarious challenges posed by fuel smuggling. By working together, we can secure the nation’s economic interests and ensure equitable access to fuel for all Nigerians,” Adeniyi concluded.
As smuggling activities persist, the Federal Government’s proactive measures will be crucial in safeguarding Nigeria’s economic stability and ensuring fair fuel distribution within its borders.
