The devaluation of the Naira to N1,560/$1 under President Bola Tinubu’s administration has spurred an increase in the cross-border smuggling of Premium Motor Spirit (PMS) to neighbouring countries.
According to a report by Leadership on Monday, petrol smuggling has become rampant in border communities across Nigeria.
Despite the removal of the fuel subsidy by the government, smuggling activities have persisted, driven by the Naira’s depreciation, which has made Nigerian fuel cheaper compared to the CFA Franc used in neighbouring countries.
As a result, fuel smugglers flock to border-area filling stations, purchasing petrol at prices ranging from N580 to N630 per litre and selling it for as much as N1,200 in neighbouring countries.
The smugglers primarily purchase fuel from major marketer-owned filling stations along the Sango-Idiroko route, which then sold to smugglers at inflated prices. Although the Nigeria Customs Service (NCS) has intensified its crackdown on fuel smuggling, the illicit trade continues to thrive.
From January to July 2024, the NCS intercepted 1,529,996 liters of PMS—equivalent to 46 tankers—on the brink of being smuggled out through Nigeria’s land borders.
These seizures occurred in states sharing borders with the Republic of Benin and Niger Republic. Data from the Customs Service valued the seized PMS at N205.4 billion, with 955 seizures made over the seven months.
Speaking anonymously, one fuel smuggler explained that despite the government’s prohibition on discharging petroleum products within 20 kilometres of Nigeria’s borders, the smuggling trade remains lucrative due to strong demand in neighbouring countries.
“Smugglers transport the fuel using specially modified vehicles, converting the petrol into 30-litre jerry cans, and smuggling it across the border via land routes or waterways,” the smuggler added.
Another smuggler noted that while the removal of the subsidy initially made smuggling less profitable, the Naira’s continued devaluation has reignited the trade. Fuel purchased at N580 to N630 per litre in Nigeria is sold for N1,200 to N1,300 per litre in Benin Republic, where the same quantity fetches around 700 CFA, equivalent to N1,850.
The smugglers admitted to bypassing security checkpoints by navigating through remote bush paths and creeks.
They disclosed that they prefer to purchase fuel from major marketers at government-approved rates, as independent marketers tend to be more expensive.
The smugglers typically buy large quantities of fuel, sometimes spending between N150,000 and N200,000 in a single transaction, which the filling stations prioritize due to the high volume of sales.
YOU MAY ALSO READ: Nigerian Judge to hear Binance money laundering case next week