The Federal Government has voiced concerns over the renewed smuggling of Premium Motor Spirit (PMS), commonly known as petrol, due to a significant hike in pump prices in neighboring countries. This development follows the removal of the fuel subsidy by the Nigerian government.
Price Disparities and Smuggling Incentives
Currently, the average price of petrol in Nigeria is approximately N701 per litre, while in neighboring countries, the average cost is N1,787 per litre. This price disparity has created lucrative incentives for smugglers to transport PMS out of Nigeria.
Government Response: Operation Whirlwind
To tackle this issue, the Nigeria Customs Service (NCS), in collaboration with the Office of the National Security Adviser (ONSA), has launched Operation Whirlwind. This operation aims to address fuel smuggling and ensure Nigerians benefit from fuel price deregulation.
Statistical Evidence of Smuggling
Adeniyi cited significant increases in the daily evacuation of PMS in border states like Borno and Kebbi, which saw rises of 76% and 59%, respectively, between April and May 2024. Similarly, Sokoto and Taraba recorded 247% and 234% increases year-on-year. These changes, coupled with price discrepancies, suggest substantial smuggling activities.
Seizures and Intelligence Operations
Operation Whirlwind has led to the interception of 150,950 litres of PMS valued at N105,965,391 in the past two weeks. Seizures include large quantities intercepted in various locations, particularly in Adamawa and Ogun States.
The NCS, supported by the Customs Act 2023, has introduced several measures, including:
1. Data Sharing : Enhanced data sharing between NMDPRA and ONSA.
2. Monitoring Movements : Strict monitoring of tanker movements to ensure delivery to approved locations.
3. Automation of Systems : Encouraging independent marketers to adopt automated fleet management systems.
4. Regulation of Fuel Stations : Managing the proliferation of petrol stations in border areas.
Implications for National Security and Economy
Unchecked smuggling could exacerbate Nigeria’s economic challenges and increase foreign exchange pressures. Moreover, the influx of unaccounted foreign currency may fund illegitimate activities, threatening national security.
The Federal Government remains committed to curbing fuel smuggling through strategic collaborations and rigorous enforcement of new measures. However, it emphasizes that operations will not disrupt legitimate activities of border communities. The NCS has issued a stern warning to smugglers to desist or face severe legal consequences.
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Written by Doris Chinwe Omemgbeoji