Massive Petrol Smuggling to Neighboring Countries Raises FG's Concern

The Federal Government has raised alarm over the resurgence of petrol smuggling, following a significant price hike in neighboring countries. The Nigeria Customs Service has launched Operation Whirlwind to combat the illegal export of Premium Motor Spirit (PMS) from Nigeria, which has resulted in the seizure of over 150,000 liters of PMS valued at N105.9 million in just two weeks.

The Federal Government has sounded the alarm over the resurgence of petrol smuggling, following a significant price hike in neighboring countries. This development has led to a surge in the illegal export of Premium Motor Spirit (PMS) from Nigeria.

While the average price of petrol in Nigeria stands at around N701 per liter, neighboring countries are selling the same product for a whopping N1,787 per liter. This stark price disparity has fueled a massive smuggling operation, with large quantities of PMS being illegally exported from Nigeria over the past two weeks.

To combat this menace, the Nigeria Customs Service (NCS) has joined forces with the Office of the National Security Adviser (ONSA). The Comptroller-General of the NCS, Adewale Adeniyi, emphasized the need for a collaborative effort to tackle the issue and prevent further economic losses.

He said, “Today, we are here to update members of the public on the strategic efforts of the Nigeria Customs Service in addressing the critical issue of fuel smuggling through the recently launched Operation Whirlwind, under the auspices of the Office of the National Security Adviser.

“About a year ago, the Federal Government made the bold strategic decision to remove the fuel subsidy. This crucial step 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,” he stated.

According to the customs boss, while the price advantage of PMS in Nigeria benefits citizens, it also creates a tempting opportunity for smugglers to export the product to neighboring countries where prices are significantly higher, at two to three times the Nigerian price.

The Comptroller-General cited data from the Nigeria National Midstream and Downstream Petroleum Regulatory Authority, which shows the average daily distribution of PMS to various states in Nigeria, as evidence of this trend. This data substantiates the claim that the price disparity is fueling a lucrative smuggling operation.

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.”

According to Adeniyi, reliable information gathered from border areas confirms and supports these suspicions, indicating that smuggling activities are indeed taking place.

“In response to the alarming increase in fuel smuggling, the NCS in close collaboration with the NSA initiated Operation Whirlwind. This nationwide operation aims to:

a. Ensure that Nigerians enjoy the full benefits of fuel price deregulation in line with the vision of President Bola Tinubu.

b. Defend the national currency and reduce pressures that may be attributed to the activities of smugglers.

c. Identify, dismantle and disrupt cartels of smugglers operating within the ecosystem.

d. Raise awareness of the local communities and solicit their support to achieve these objectives

Adeniyi explained that the operations, backed by reliable intelligence and enabled by the newly enacted Customs Act of 2023, focus on disrupting illegal export schemes, specifically those involving petroleum products, to guarantee their availability for domestic use and prevent the wastage of government resources.

“Coordinated by a Comptroller of Customs, the operation covers all NCS Zones (A-D), involving selected officers trained and equipped to handle the task with strict adherence to professionalism. Collaboration with the ONSA and the NMDPRA supports the operation, utilising internal and external sources. This operation was launched approximately two weeks ago," Adeniyi stated.

“In the past two weeks we have received credible intelligence on the relative stability of the price of PMS around border states, this is easily attributed to disruptions in the operations of smugglers. Within seven days of intensive operations, a total of 150,950 litres of PMS, valued at N 105,965,391, have been intercepted at various locations nationwide.

“The seizures include:

a. On Friday, May 31, 2024. A total of 45,000 litres of PMS in a tanker was seized at Mova, Adamawa.

b. On Saturday, June 1, 2024, a total of 45,000 litres of PMS in a tanker was seized at Mubi, Adamawa.

c. On Monday, June 3, 2024, a total of 2,375 litres of PMS in 95 25-litre jerrycans were seized at Mubi, Adamawa State.

d. On Wednesday, June 5, 2024, a total of 4,450 litres of PMS in 178 25-litre jerrycans were seized in three different locations, including Song-Wuroboki, Mubi-Sahuda road and Gidan Madara- Sahuda road all in Adamawa.

e. On Thursday, June 6, 2024, a total of 20,030 litres of PMS in 25 and 30-litre jerrycans were sized in various locations across the country including Maiha, Adamawa State, Illela, Sokoto and Agbaragba Creek in Mfum border of Cross River State.

f. On Friday, June 7, 2024, a total of 32,900 litres of PMS were seized at border locations in the North-East and South- West axis of the country. A total of 17,500 litres was recorded in Mubi, Adamawa State, while 15,400 litres was recorded around Imeko Obada Road in 616 25-litre jerrycans.

g. On Saturday, June 8, 2024, a total of 8,525 litres of PMS were also seized in two separate locations in Owode (Owode- Ilaro road and Owode-Atan road) in Ogun State.

Adeniyi emphasized that, in addition to the ongoing efforts under Operation Whirlwind, Customs Area Commands remain proactive and vigilant in their surveillance, thwarting attempts by smugglers to illegally export PMS. He highlighted that the service has successfully intercepted and seized substantial quantities of PMS from unscrupulous individuals who sought to hoard fuel and inflict undue hardship on Nigerians.

“A combined diversion of 280,135 litres of PMS worth N196,524,075.50 raises serious economic concerns with broader implications on national security. The quantum of this diversion is equivalent to more than 84 per cent of the daily evacuation of PMS to states like Ekiti and Jigawa. It also represents around 32.57 per cent of the daily evacuation to the border states of Borno and Katsina according to the data on average daily evacuation obtained from NMDPRA,” Adeniyi said.

Adeniyi warned that if these illicit activities were allowed to continue unchecked, they would likely worsen Nigeria's economic woes and exacerbate the existing foreign exchange difficulties, leading to even more severe consequences.

The Customs boss pointed out that the untraceable foreign currency influx could potentially fund illegal endeavors, including the financing of criminal organizations and non-state actors that pose a threat to Nigeria's national security and stability.

“These issues have serious implications for national security, making it imperative to check, curtail, and dismantle these illicit operations. Achieving this requires the cooperation and collaboration of patriotic government agencies, exemplified by the ongoing Operation Whirlwind.

“Our operations will not obstruct or interfere with the legitimate activities of patriotic citizens in these areas. I will conclude with a stern warning to the perpetrators of these illicit acts: Desist immediately or face the full wrath of the law,” Adeniyi declared.