Despite the recent subsidy removal, Nigeria’s Premium Motor Spirit, commonly known as petrol, remains 58 per cent cheaper than in neighboring countries, continuing to fuel cross-border smuggling.
A survey of petrol prices in several West African countries, including Nigeria, Benin, and Ghana, reveals that the average price per litre is N1,671, which is 58% higher than the N1,060 per litre price in Lagos.
In the Republic of Benin, petrol costs 600 Cefa per litre, approximately $0.97 or N1,649. In Ghana, the price is Ghc 14.35 per litre (Super XP), about $0.90 or N1,530. Meanwhile, in The Gambia, petrol is priced at D77.89 per litre, equivalent to $1.09 or N1,853 per litre.
Reports indicate that smugglers continue to transport petrol illegally through waterways, borders, and even by using bottles and cans. Smuggling operations are often conducted by a range of individuals, including women and children, who retail the product across the borders.
A trader involved in the illegal business of transporting Nigerian petrol to Niger explained the profitability of the trade, revealing that petrol in Nigeria is much cheaper than in neighboring countries. He noted that at N1,060 per litre in Lagos, the price would be no less than N1,400 per litre in Niger.
The Nigerian Customs Service (NCS) has confirmed the ongoing issue of fuel smuggling. According to Abdullahi Maiwada, NCS spokesman, more than 10 trucks carrying smuggled petrol have been seized since June 2024 through Operation Whirlwind, a government initiative aimed at combating petroleum product smuggling and diversion.
In an official statement, the Customs outlined several seizures of smuggled petrol, totaling over 650,000 litres. The duty-paid value of the confiscated fuel is estimated at around N700 million. The Customs has also identified complex smuggling networks and the challenges of limited resources, corruption, and threats to personnel as major obstacles to curbing the problem.
The Nigerian National Petroleum Company Limited (NNPCL) has repeatedly condemned fuel smuggling. Its spokesman, Olufemi Soneye, reaffirmed the company’s stance against the practice and stated that NNPC has supported anti-smuggling efforts through policy advocacy and collaboration with relevant agencies.
In a previous statement, NNPC Group CEO Mele Kyari highlighted the significant profits smugglers make from transporting petrol across borders, with some smugglers earning up to N17 million per truck. Kyari explained that the removal of subsidies was meant to eliminate the price disparity and reduce the incentive for smuggling, though the issue persists.
Historically, the Nigerian government has spent billions of Naira subsidizing petrol imports, a portion of which was smuggled to neighboring countries. Between 2006 and 2018, Nigeria spent over N9.84 trillion on petrol imports, with much of it finding its way to West Africa.
Minister of State for Petroleum Resources, Sen. Heineken Lokpobiri, also acknowledged that petrol smuggling remains an issue due to Nigeria’s subsidized fuel prices, which made it attractive for smugglers to divert petrol to other West African nations. He emphasized that Nigeria plays a pivotal role in Africa’s energy security and that this dynamic is likely to continue unless there are significant changes in the region’s energy policies.
With the recent deregulation, the price of petrol in Nigeria has risen from N680 per litre to N1,060 per litre in Lagos, a change that the government hoped would eliminate the smuggling incentives. However, the persistence of smuggling suggests that challenges remain in curbing this illegal trade.
