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    Home » ‘Smugglers still reaping big despite fuel subsidy removal’

    ‘Smugglers still reaping big despite fuel subsidy removal’

    April 27, 2025
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    *Seized cargo of petrol

    Mkpoikana Udoma

    Port Harcourt — The Nigeria Customs Service, NCS, has raised the alarm that the removal of fuel subsidies has failed to curb the rampant smuggling of petrol across Nigeria’s borders, as criminals continue to profit from the wide price gap between Nigeria and its neighbouring countries.

    Comptroller-General of Customs, Adewale Adeniyi, revealed this during the Service’s first-quarter performance briefing held recently in Abuja, stating that Premium Motor Spirit, PMS, smuggling remains “highly lucrative” despite government reforms.

    According to Adeniyi, pump prices in Nigeria currently range from N880 to N950 per litre, while PMS prices are between N1,600 and N2,000 per litre in countries such as Niger Republic, Benin Republic, and Cameroon

    “Even after the fuel subsidy was removed, smuggling of PMS hasn’t stopped. The reason is simply because our pump prices remain significantly lower than those in neighbouring countries.

    “That price gap continues to drive smuggling because it guarantees instant profit for traffickers,” he stressed.

    In response to the persistent fuel diversion crisis, the Customs Service had launched a dedicated anti-smuggling initiative codenamed Operation Whirlwind.

    “The motivation for smugglers is clear, and so must our response be robust, proactive, and strategic,” Adeniyi declared.

    The operation, he explained, focuses on intelligence-driven border surveillance, clampdowns on smuggling routes, and collaboration with other security agencies.

    Adeniyi expressed concern over how fuel smuggling not only deprives Nigeria of revenue but also strengthens illegal markets in West Africa.

    “Petroleum product diversion undermines our economy and directly feeds the black-market system thriving beyond our borders,” he noted.

    He also revealed that although some regions in Cameroon have begun to cut down their local prices (now hovering around N850 to N900 per litre) the profit margin remains attractive enough to sustain illegal trade.

    “We cannot afford to be reactive. Smuggling is adapting, and so must we,” Adeniyi concluded, warning that the Service would deploy all lawful means to disrupt and dismantle smuggling cartels profiting from Nigeria’s regulated fuel market.

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