The Nigeria Customs Service (NCS) has provided insights into the ongoing smuggling of petrol across Nigeria’s borders, even after the removal of fuel subsidies.

Speaking at the service’s first quarter performance briefing in Abuja on Tuesday, the Comptroller General of Customs, Adewale Adeniyi, stated that the significant price difference between petrol in Nigeria and neighbouring countries continues to make smuggling a profitable venture.

Adeniyi noted, “Despite the removal of the fuel subsidy, it is still profitable for smugglers to take fuel illegally from Nigeria. You know that the prices are dynamic.”

He elaborated that while Nigeria has ended its subsidy regime, the relatively lower pump price of Premium Motor Spirit (PMS) still incentivizes its illegal exportation to countries such as Cameroon, Niger, and the Benin Republic, adding that it “Has remained profitable due to the price arbitrage”.

Adeniyi highlighted the price disparity, stating, that PMS price “is lower compared to around N1600 and N2000 per litre in Cameroon, Niger, and the Benin Republic,” while the price of the product within Nigeria ranges between N880 and N950 per litre.

He further explained that even with slight decreases in local fuel costs in some of these neighbouring countries, the price gap remains substantial enough to drive smuggling activities.

“While the price of the products is coming down to around N850 and N900 per liter in places like Cameroon, it is close to N2,000 per liter, in Niger, it is N1,600 per liter, and the same with the Benin Republic.”

In response to this persistent challenge, Adeniyi announced that the NCS has launched a special anti-smuggling operation. “This arbitrage provides the incentive. That is why we launched the operating Whirlwind,” he said.