According to the Nigeria Customs Service (NCS), the main reason why gasoline is still being smuggled across the country’s borders even after fuel subsidies were eliminated is because of price disparities with neighboring nations.
Adewale Adeniyi, the Comptroller General of Customs, revealed this information at the service’s performance briefing for the first quarter in Abuja.
He pointed out that the price dynamics still make it profitable for smugglers to transport fuel illegally from Nigeria, even after the fuel subsidy was eliminated.
Because of this circumstance, people who are involved in fuel smuggling find it especially alluring.
He went on to say that even though Nigeria no longer has a subsidy structure, the illicit export of Premium Motor Spirit to nations like Cameroon, Niger, and the Benin Republic is still encouraged by the relatively cheaper pump price.
“The price arbitrage has kept the fuel profitable,” he said.
According to him, PMS costs between ₦880 and ₦950 per litre in Nigeria, but between ₦1600 and ₦2000 per litre in Cameroon, Niger, and the Benin Republic.
Adeniyi emphasized that even though some of these countries have seen slight drops in domestic fuel costs, this significant price difference still encourages smuggling.
According to the Customs Boss, “although the price of the products is decreasing to about ₦850 and ₦900 per liter in places like Cameroon, it is still close to ₦2,000 per liter in Niger, and the same is true with the Benin Republic.”
To address the issue, Adeniyi said, the NCS has launched a special anti-smuggling operation.
The incentive comes from this arbitrage. We started the Operation Whirlwind for that reason,” he stated.
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