The removal of fuel subsidies in Nigeria has significantly curbed the cross-border smuggling of Premium Motor Spirit (PMS), according to the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari.

Kyari, speaking during an interview with Channels TV on Sunday, explained that the subsidy previously created a substantial price gap between Nigeria and its neighbouring countries, making fuel smuggling highly profitable.

“Before the subsidy removal, the price difference was huge, and that incentivised smugglers to move fuel across borders,” Kyari noted.

He said that eliminating the subsidy has “effectively calibrated fuel prices,” stripping away the profitability of illegal fuel trade. The new price alignment ensures that the cost of PMS in Nigeria is now comparable with prices in neighbouring countries, discouraging smuggling operations.

“The removal of fuel subsidy in Nigeria has been a game-changer in the fight against cross-border smuggling,” Kyari stated.

He further said that with the subsidy gone, the cost disparity between legal and illegal transportation of PMS is no longer attractive.

“This is a positive development for Nigeria’s energy sector, as it can help ensure that consumers are paying fair prices for fuel,” he added.

The subsidy removal, Kyari stressed, not only reduces smuggling but also fosters price parity, contributing to a more stable and fair energy market.