The Federal Government has raised the alarm over the renewed smuggling of Premium Motor Spirit, commonly called petrol, and the sale of same for as high as N1787/litre, following the massive hike in the pump price of the commodity in neighbouring countries.
The development, the government noted, has led to increased smuggling of the commodity in the past two weeks,
The Comptroller-General of the Nigeria Customs Service, Adewale Adeniyi, who disclosed this at a press conference in Yola.
He said the NCS was joining forces with the Office of the National Security Adviser to tackle the menace, through the recently launched Operation Whirlwind, under the auspices of the Office of the National Security Adviser.
He noted that in spite the removal of petrol subsidy and upward adjustment in fuel prices to reflect current realities, inflationary pressures and financial strain on households, particularly those with lower incomes, comparative studies still showed that fuel prices in Nigeria are the cheapest compared to other countries in the West and Central African region.
“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.”
Adeniyi said 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 is 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.
According to him, 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,” he added.
Adeniyi said credible intelligence on activities around border areas corroborated these suspicions, adding that the operations, which were guided by credible intelligence and empowered by the new Customs Act 2023, target illegal exportation, particularly of petroleum products, ensuring their availability within the country and conserving government resources.
