DMEA: Nigerian fuel smugglers continue to profit

Nigerian fuel smugglers continue to cross borders to trade petrol from cans and bottles due to low prices of the product in the country, with anonymous traders noting that that the business remains “very profitable,” according to Vanguard.

A smuggler interviewed anonymously by Vanguard noted that despite having conducted business for decades, sales have remained stable: “I have been doing this for decades. It is a good business because many people in Niger and beyond depend on petrol from Nigeria. The product is always cheaper in Nigeria than in Niger. At the current price of NGN1,060 [$0.62] per litre in Lagos, it would not be less than NGN1,400 [$0.82] per litre in Niger Republic”.

Nigeria Customs Service public relations officer Abdullahi Maiwada confirmed that petrol smuggling was still prominent, and that around 10 trucks had been seized between June and November 2024 thanks to Operation Whirlwind, which was created to “combat petroleum product smuggling and diversion in Nigeria,” he said.

In a separate report, the organisation highlighted that it had been able to halt multiple shipments of smuggled petrol while also disrupting “several organised smuggling networks, leading to the detection of smuggling methods and the arrest of key players involved in these illicit activities”. It added that any marketers involved in aiding the smugglers had been “handed over to NMDPRA for appropriate sanctions”.

According to Customs, the issue remains widespread, with numerous complex smuggling networks operating across the country with help from retail outlets, 17 of which have since been closed.

“In terms of the value of seizures, the duty paid value is estimated to be around NGN700mn [$414,000]. The [most recent] seizure was recorded across the border areas of Adamawa, Akwa-Ibom, Cross River, Kebbi, Lagos, Ogun and Sokoto states respectively,” Maiwada said, adding: “Operation Whirlwind has made significant strides in combating petroleum product smuggling and diversion in Nigeria. By strengthening collaboration, improving intelligence sharing, and enhancing enforcement efforts, Operation Whirlwind can contribute to a more secure and sustainable energy sector in Nigeria”.

In response to the news, the Nigerian National Petroleum Co. Ltd.’s (NNPCL) spokesperson Olufemi Soneye remarked that the oil major continued to hold an anti-smuggling stance. Despite this, he noted that the issue was not the NNPCL’s direct responsibility, but that the company would continue to support policies aimed at targeting smugglers. “We have repeatedly condemned the smuggling of petrol and other products through various ways and means. We have enriched policy formulation, done advocacy and given support to agencies directly involved in tackling smuggling,” he added.

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