It stated that while the average price of petrol in Nigeria
was about N701/litre, the average cost of the product in neighbouring countries
was N1,787/litre, a development that heightened PMS smuggling out of Nigeria in
the past two weeks.
The Comptroller-General of the Nigeria Customs Service,
Adewale Adeniyi, who disclosed this at a press conference in Yola, said the NCS
had to join forces with the Office of the National Security Adviser to tackle
the menace.
He said, “Today, we are here to update members of the public
on the strategic efforts of the Nigeria Customs Service in addressing the
critical issue of fuel smuggling through the recently launched Operation
Whirlwind, under the auspices of the Office of the National Security Adviser.
“About a year ago, the Federal Government made the bold
strategic decision to remove the fuel subsidy. This crucial step was aimed at
freeing up substantial funds that could be redirected to other productive
sectors of the economy, reducing pressure on our foreign exchange reserves, and
diversifying economic growth.
“The immediate impact was an upward adjustment in fuel
prices to reflect current realities. Despite the inflationary pressures and
financial strain on households, particularly those with lower incomes,
comparative studies still show that fuel prices in Nigeria remain the cheapest
compared to other countries in the West and Central African region,” he stated.
PMS prices
Speaking further, Adeniyi said, “While PMS is sold at an
average of N701.99 in Nigeria, it is sold at an average of N1,672.05 in the
Republic of Benin and N2,061.55 in Cameroon. In other countries around the
region, the price of PMS ranges from N1,427.68 in Liberia to N2,128.20 in Mali,
averaging N1,787.57, according to the fuel price data obtained from open source.”
The customs boss said this comparative price advantage,
though beneficial to Nigerian citizens, unfortunately, created a lucrative
incentive for smuggling PMS out of Nigeria, where prices were two to three
times higher.
He said this is substantiated by the report on the average
daily evacuation of PMS to various states in Nigeria, obtained from the Nigeria
National Midstream and Downstream Petroleum Regulatory Authority.
In his speech, which was made available to our correspondent
in Abuja, he said, “The (NMDPRA) report shows significant changes in evacuation
patterns that are not justified by corresponding economic and demographic
changes, particularly in border states that share contiguous borders with our
neighbours.
“Between April and May 2024, Borno and Kebbi states recorded
76 and 59 per cent increases in evacuations, ranking among the top three
states. On a year-on-year basis (May 2023 and May 2024), Sokoto and Taraba
states recorded the most substantial increases in evacuations, with 247 and 234
per cent increases, respectively.
“Border states like Katsina and Kebbi also recorded more
than 50 per cent increases in evacuation. These discrepancies, along with the
price disparity between domestic PMS (N701.99) and neighbouring countries
(N1,787.57), raise concerns about the actual delivery of PMS and the potential
for smuggling.”
Adeniyi said credible intelligence on activities around
border areas corroborated these suspicions.
“In response to the alarming increase in fuel smuggling, the
NCS in close collaboration with the NSA initiated Operation Whirlwind. This
nationwide operation aims to: a. Ensure that Nigerians enjoy the full benefits
of fuel price deregulation in line with the vision of President Bola Tinubu.
“b. Defend the national currency and reduce pressures that
may be attributed to the activities of smugglers. c. Identify, dismantle and
disrupt cartels of smugglers operating within the ecosystem.
d. Raise awareness of the local communities and solicit
their support to achieve these objectives,” he stated.
Anti-smuggling team
He said the operations, which were guided by credible
intelligence and empowered by the new Customs Act 2023, target illegal
exportation, particularly of petroleum products, ensuring their availability
within the country and conserving government resources.
“Coordinated by a Comptroller of Customs, the operation
covers all NCS Zones (A-D), involving selected officers trained and equipped to
handle the task with strict adherence to professionalism.
“Collaboration with the ONSA and the NMDPRA supports the
operation, utilising internal and external sources. This operation was launched
approximately two weeks ago,” Adeniyi stated.
According to him, the NCS had made some significant strides
in the ongoing Operation Whirlwind, aimed at curbing the smuggling of Premium
Motor Spirit out of the country.
“In the past two weeks we have received credible
intelligence on the relative stability of the price of PMS around border
states, this is easily attributed to disruptions in the operations of
smugglers. Within seven days of intensive operations, a total of 150,950 litres
of PMS, valued at N 105,965,391, have been intercepted at various locations
nationwide.
“The seizures include: a. On Friday, May 31, 2024. A total
of 45,000 litres of PMS in a tanker was seized at Mova, Adamawa.
b. On Saturday, June 1, 2024, a total of 45,000 litres of
PMS in a tanker was seized at Mubi, Adamawa. c.On Monday, June 3, 2024, a total
of 2,375 litres of PMS in 95 25-litre jerrycans were seized at Mubi, Adamawa
State.
“d. On Wednesday, June 5, 2024, a total of 4,450 litres of
PMS in 178 25-litre jerrycans were seized in three different locations,
including Song-Wuroboki, Mubi-Sahuda road and Gidan Madaral – Sahuda road all
in Adamawa.
e. On Thursday, June 6, 2024, a total of 20,030 litres of
PMS in 25 and 30-litre jerrycans were sized in various locations across the
country including Maiha, Adamawa State, Illela, Sokoto and Agbaragba Creek in
Mfum border of Cross River State.
“f. On Friday, June 7, 2024, a total of 32,900 litres of PMS
were seized at border locations in the North-East and South-West axis of the
country. A total of 17,500 litres was recorded in Mubi, Adamawa State, while
15,400 litres was recorded around Imeko Obada Road in 616 25-litre jerrycans.
g. On Saturday, June 8, 2024, a total of 8,525 litres of PMS were also seized
in two separate locations in Owode (Owode-Ilaro road and Owode-Atan road) in
Ogun State.”
Adeniyi stated that in addition to the ongoing operations
under Operation Whirlwind, the Customs Area Commands remained vigilant against
the illicit activities. of smugglers targeting PMS.
He said the service had recorded significant seizures of PMS
from unpatriotic individuals attempting to deprive Nigerians of access to fuel
and cause unnecessary hardship.
“While the operation continues, our Federal Operating Units
and Marine Commands have intercepted a total of 129,185 litres of fuel valued
at N90,558,685. Notably, 54.48 per cent of these seizures occurred in the
North-West region, including states such as Katsina, Kebbi, and Sokoto, while
23.87 per cent of the seizures were recorded in the North-Eastern part of the
country, particularly in states like Taraba and Adamawa.
“It is worth noting that these states have also seen a
significant increase in fuel evacuation as reported by the NMDPRA. It is now
evident that the recent rise in the distribution of PMS to border states is
driven by the activities of smugglers.
“A combined diversion of 280,135 litres of PMS worth
N196,524,075.50 raises serious economic concerns with broader implications on
national security. The quantum of this diversion is equivalent to more than 84
per cent of the daily evacuation of PMS to states like Ekiti and Jigawa. It
also represents around 32.57 per cent of the daily evacuation to the border
states of Borno and Katsina according to the data on average daily evacuation
obtained from NMDPRA,” Adeniyi said.
He noted that if these activities were left unchecked, they
could further deteriorate the country’s economic situation and exacerbate
current foreign exchange challenges.
The customs helmsman stated that the influx of unaccounted
foreign currency could be channelled into funding illegitimate activities,
including the support of non-state actors engaged in criminal activities
against the Nigerian state.
“These issues have serious implications for national
security, making it imperative to check, curtail, and dismantle these illicit
operations. Achieving this requires the cooperation and collaboration of
patriotic government agencies, exemplified by the ongoing Operation Whirlwind.
“Under this collaboration, efforts are being made to resolve
existing gaps in the following areas: a. Sharing of Critical Data Among
Agencies. Ongoing engagement with the NMDPRA and the ONSA focuses on sharing
daily data on PMS loading. This will enable the NCS to track the movement and
delivery of these products to their intended locations.
“b. Monitoring movement of PMS lifting. The NCS will enforce
strict monitoring of tanker movements, ensuring that PMS products lifted from
NMDPRA facilities are delivered to approved locations. c. Use of Manual Systems
by Independent Marketers. Independent marketers are advised to automate their
existing fleet management systems to enable tracking and geo-fencing capabilities.
“d. Proliferation of fuel stations at border areas. The NCS
will collaborate with relevant licensing agencies to manage the proliferation
of petrol stations around border areas,” Adeniyi stated.
He said these measures were essential and would be
rigorously implemented to ensure strict adherence to government expectations.
“However, in enforcing these measures, we are mindful of the
potential challenges they may pose to border communities. Our operations will
not obstruct or interfere with the legitimate activities of patriotic citizens
in these areas. I will conclude with a stern warning to the perpetrators of
these illicit acts: Desist immediately or face the full wrath of the law,”
Adeniyi declared.
Petrol subsidy
On May 29 2023, the Federal Government removed the subsidy
on petrol.
Earlier in February that year, the government declared that it had to shut
down 270 filling stations in a bid to stop the smuggling of petrol out of
Nigeria.
It said the activities of smugglers pushed Nigeria’s petrol
consumption daily to about 67 million litres because a large volume of the
product was moved out of the country illegally by smugglers.
The PUNCH precisely reported on February 3, 2023 that
the Federal Government had to deploy
operatives of the Department of State Services on tankers transporting petrol
to filling stations to halt the diversion and smuggling of the product.
The report stated that over 120 DSS officers were deployed
at the time to follow fuel tankers to their various retail outlets in Abuja, as
more security agencies were drafted into the exercise for nationwide coverage.
This came as the government also revealed at the time that
it shut down over 270 filling stations for being involved in diverse
infractions such as hoarding and selling above-approved price, among others.
The Chief Executive of the Nigerian Midstream and Downstream
Petroleum Regulatory Authority, Farouk Ahmed, and the Group Chief Executive
Officer of the Nigerian National Petroleum Company Limited, Mele Kyari,
disclosed this in Abuja during a live television programme monitored by our
correspondent.
Speaking on efforts being put in place to halt the diversion
and cross-border smuggling of PMS, Kyari had said, “So much is going on, there
are government security interventions.
“I know the kind of work that we do with the security
agencies, for instance, in Abuja alone, we have over 120 DSS officers following
every truck to fuel stations and we are activating this across the country.
“We are ensuring that we get other government security
agencies to follow these trucks to their locations, in order to be very sure
that these trucks actually get to the fuel stations and there are not sold on
the way and they don’t cross the borders.”
Kyari had earlier explained at a stakeholders meeting in
Abuja that Nigeria’s fuel was smuggled to other countries, as he insisted that
the scarcity of PMS at the time was not due to the elections that were held in
February 2023.
“There’s no dispute about this that our fuel gets to other
countries, including in marine containers. We have evidence now that some of
our customers are actually taking investors to other countries and we will get
to the root of this.
“The appropriate government security agencies will deal with
this. But this is the reality that we are dealing with. You do have
cross-border smuggling, either in the form of round-tripping or whatever name
we call it.
“So the 66 or 67 million litres that you have always seen
include all these, the cross-border smuggling volumes. And it means that
anytime we don’t satisfy those markets, it will affect your domestic market.
This is the reality that we are dealing with,” he stated.
The NMDPRA boss, while speaking on sanctions taken against
downstream operators who flouted the approved regulations, stated that over 270
filling stations and seven depots were closed at the time.
Ahmed had said, “Because of control that we have in most of
the major cities, whether it is Port Harcourt, Lagos, Ibadan, Abuja, etc, the
marketers tend to go to the rural areas where you can buy petrol at a high
price.
“And, of course, it is our responsibility as a regulator to
ensure strict monitoring and enforcement. What we did was that a couple of
weeks ago we had to shut about seven depots because of the inflation of their
ex-depot price.”