The Nigeria Customs has revealed that fuel smuggling is still a thriving business despite the removal of the petroleum subsidy, due mainly to the wide price difference between Nigeria and its neighboring countries.
At a press briefing in Abuja on Tuesday, the Comptroller-General of the Nigeria Customs Service (NCS), Adewale Adeniyi, shared new insights on why smuggling of Premium Motor Spirit (PMS), commonly known as petrol, continues.
He said that even though the government has scrapped the subsidy, the price of fuel in Nigeria remains low compared to prices in surrounding nations, making it a profitable venture for smugglers.
“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,” Adeniyi said.
He pointed out that while Nigerian petrol is sold at prices between N880 and N950 per litre, it is still significantly cheaper than what is available in countries like Cameroon, Niger, and the Benin Republic. “Is lower compared to around N1600 and N2000 per litre in Cameroon, Niger, and the Benin Republic,” he noted.
This huge price difference, known as price arbitrage, creates an attractive incentive for smugglers to transport Nigerian fuel illegally across the borders. Adeniyi explained that despite slight drops in prices in some of these countries, the demand for cheaper Nigerian fuel remains high.
“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,” he added.
To tackle the situation, the Customs chief said the NCS has begun a special anti-smuggling operation aimed at disrupting illegal fuel movement. “This arbitrage provides the incentive. That is why we launched the operating Whirlwind,” he said.
The Customs Service has also called for stronger cross-border collaboration and support from security agencies to curb the ongoing fuel smuggling. Despite efforts, the problem remains widespread due to high profits and weak border controls in certain areas.
