ABUJA, Nigeria (VOICE OF NAIJA)-The Nigeria Customs Service (NCS) has provided insight into the persistent smuggling of petrol across the country’s borders, even after the removal of fuel subsidies.
Comptroller General of Customs, Adewale Adeniyi, explained that the activity remains lucrative for smugglers due to the wide disparity in fuel prices between Nigeria and its neighbouring nations.
During the NCS’s first quarter performance briefing held in Abuja on Tuesday, Adeniyi remarked, “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 clarified that although the subsidy has been scrapped, Nigeria’s comparatively lower pump prices continue to encourage the illegal export of Premium Motor Spirit (PMS) to countries such as Cameroon, Niger, and the Benin Republic, as it “has remained profitable due to the price arbitrage.”
Adeniyi pointed out that while the cost of PMS within Nigeria ranges from N880 to N950 per litre, the product is sold at significantly higher prices in neighbouring countries.
READ ALSO: Navy Arrests Two Suspected Fuel Smugglers With 5,100 Litres Of Petrol
“Is lower compared to around N1600 and N2000 per litre in Cameroon, Niger, and the Benin Republic,” he stated.
The Customs chief emphasized that the considerable price gap remains a driving force behind smuggling activities, despite recent marginal drops in fuel prices in some of the affected countries.
“While the price of the products is coming down to around N850 and N900 per liter in places like Cameroon, it is close to N2,000 per liter, in Niger, it is N1,600 per liter, and the same with the Benin Republic.”
To address this issue, Adeniyi said the NCS has launched a targeted anti-smuggling campaign.
“This arbitrage provides the incentive. That is why we launched the operating Whirlwind,” he said.