The Federal Government issued a warning on Monday regarding the resurgence of smuggling activities of Premium Motor Spirit (PMS or petrol) due to a significant increase in pump prices in neighboring countries. According to official reports, while petrol in Nigeria averages around N701/litre, it’s priced at approximately N1,787/litre in neighboring nations. This stark price difference has led to a surge in smuggling over the past two weeks.
Adewale Adeniyi, the Comptroller-General of the Nigeria Customs Service (NCS), revealed this concern during a press conference held in Yola. Adeniyi emphasized that the NCS, in collaboration with the Office of the National Security Adviser (ONSA), has initiated Operation Whirlwind to combat this smuggling menace.
He highlighted the decision made by the Federal Government to remove fuel subsidies about a year ago, aiming to redirect funds to other sectors, reduce pressure on foreign exchange reserves, and diversify economic growth. However, this move resulted in an adjustment in fuel prices to reflect current market realities. Despite the economic challenges, Adeniyi noted that fuel prices in Nigeria still remain relatively cheaper compared to neighboring countries in West and Central Africa.
Adeniyi underscored the significant disparities in petrol prices between Nigeria and its neighbors, citing examples from the Republic of Benin, Cameroon, Liberia, and Mali. These differences, while beneficial to Nigerian consumers, have unfortunately fueled smuggling activities due to the lucrative incentives.
The NCS chief presented data indicating unusual increases in petrol evacuations in certain states, particularly those bordering neighboring countries. These discrepancies, coupled with the price differentials, raised concerns about smuggling activities.
Operation Whirlwind, a nationwide initiative, aims to ensure Nigerians benefit from fuel price deregulation, defend the national currency, dismantle smuggling cartels, and raise awareness among local communities to garner support.
Adeniyi highlighted recent successes of the operation, including the interception of significant quantities of smuggled petrol across various locations in the country. Additionally, he emphasized ongoing efforts to prevent illicit activities, with Customs Area Commands remaining vigilant against smugglers’ attempts.
He stressed the importance of cooperation among government agencies to address these challenges effectively. Measures such as data sharing, monitoring of petrol movements, and collaboration with licensing agencies to manage fuel stations near border areas are being implemented to curb smuggling activities.
Adeniyi assured that these measures would be enforced rigorously while considering potential challenges faced by border communities. He issued a stern warning to perpetrators of illicit acts, urging them to desist or face legal consequences.
The removal of petrol subsidies by the Federal Government in May 2023 was also mentioned, along with previous efforts to combat smuggling activities, including the shutdown of filling stations and deployment of security personnel to monitor fuel distribution.
In conclusion, Adeniyi reiterated the government’s commitment to curbing smuggling activities and ensuring equitable access to petrol for Nigerians while safeguarding national security and economic interests.
