FG probes fuel smuggling, cuts supply to border towns

FG probes fuel smuggling, cuts supply to border towns

As part of measures to stop the smuggling of Premium Motor Spirit, popularly called petrol, from Nigeria to neighbouring countries, the Federal Government has detained five fuel tankers and sealed three filling stations in border towns.

It was also gathered on Sunday that the continued anti-smuggling operations of the Federal Government through the Nigeria Customs Service had made fuel supply to various border communities to decrease from 32 million litres daily to about 25 million within two months.

was aimed at freeing up substantial funds that could be redirected to other productive sectors of the economy, reducing pressure on our foreign exchange reserves, and diversifying economic growth.

“The immediate impact was an upward adjustment in fuel prices to reflect current realities. Despite the inflationary pressures and financial strain on households, particularly those with lower incomes, comparative studies still show that fuel prices in Nigeria remain the cheapest compared to other countries in the West and Central African region.”

Speaking further, Adeniyi said, “While PMS is sold at an average of N701.99 in Nigeria, it is sold at an average of N1,672.05 in the Republic of Benin and N2,061.55 in Cameroon. In other countries around the region, the price of PMS ranges from N1,427.68 in Liberia to N2,128.20 in Mali, averaging N1,787.57, according to the fuel price data obtained from opensource.”

The customs boss had explained that this comparative price advantage, though beneficial to Nigerian citizens, unfortunately, created a lucrative incentive for smuggling PMS out of Nigeria, where prices were two to three times higher.

He said this was substantiated by the report on the average daily evacuation of PMS to various states in Nigeria, obtained from the Nigeria National Midstream and Downstream Petroleum Regulatory Authority

It his speech, which was made available to our correspondent in Abuja at the time, he said, “The (NMDPRA) report shows significant changes in evacuation patterns that are not justified by corresponding economic and demographic changes, particularly in border states that share contiguous borders with our neighbours.

“Between April and May 2024, Borno and Kebbi states recorded 76 and 59 per cent increases in evacuations, ranking among the top three states. On a year-on-year basis (May 2023 and May 2024), Sokoto and Taraba states recorded the most substantial increases in evacuations, with 247 and 234 per cent increases, respectively.

“Border states like Katsina and Kebbi also recorded more than 50 per cent increases in evacuation. These discrepancies, along with the price disparity between domestic PMS (N701.99) and neighbouring countries (N1,787.57), raise concerns about the actual delivery of PMS and the potential for smuggling.”

Adeniyi had also stated that credible intelligence on activities around border areas corroborated these suspicions.

1,800 stations

Meanwhile, when asked if it was true that IPMAN members had shut down about 1,800 stations in border states due to the anti-smuggling operations of customs, the agency’s spokesperson described the claim as false.

“It is not true that IPMAN has shut over 1,800 filling stations in the North-East to protest against the anti-smuggling operations by the Nigeria Customs Service.

“The truth is that the industrial action embarked upon by IPMAN on June 25, 2024, was just in Mubi and Jimeta in Adamawa State and not in the entire North-Eastern states as claimed. The strike only lasted for a day after the intervention of the Adamawa State government and NMDPRA.

The National President, IPMAN, Abubakar Maigandi, confirmed that members of the group were carrying out their operations in the area as required but stressed that the association would not condone acts of PMS smuggling.

“We have made it clear severally that we are against the smuggling of petrol and our members are aware of this because we strongly oppose such tendencies,” he told our correspondent.