Why petrol smuggling persists despite subsidy removal – Customs

The Nigeria Customs Service has explained why petrol smuggling continues across Nigeria’s borders, even after the removal of fuel subsidies.

Speaking at the agency’s first quarter performance briefing in Abuja, Comptroller General of Customs, Adewale Adeniyi, revealed that price differences between Nigeria and neighbouring countries remain a major driving force behind the illicit trade.

According to him, despite the end of the subsidy regime, Nigeria’s pump price for petrol is still significantly lower than those of nearby countries such as Cameroon, Niger, and the Benin Republic—making it a lucrative business for smugglers.

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He noted that the attractive price dynamics have continued to encourage the illegal export of Premium Motor Spirit (PMS), posing a major challenge for border security and revenue generation.

“The fuel has remained profitable due to the price arbitrage”, he noted.

He said while the price of PMS within Nigeria ranges between N880 and N950 per litre, it is sold for N1600 and N2000 per litre in Cameroon, Niger, and the Benin Republic,” he stated.

Adeniyi emphasized that this significant price gap continues to fuel smuggling activities though some of these countries witnessing slight reductions in local fuel costs.

“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.”

Adeniyi said the NCS has initiated a special anti-smuggling operation to curb the situation.

“This arbitrage provides the incentive. That is why we launched the operating Whirlwind,” he said.