58% Price Difference Drives Petrol Smuggling from Nigeria to Neighboring Countries

Nigeria’s Premium Motor Spirit (PMS), commonly known as petrol, is being smuggled into neighboring countries due to its significant price difference.

At present, petrol in Nigeria is 58 percent cheaper than in neighboring nations.

For instance, in the Republic of Benin, the cost of petrol is Ceffa 600 per liter, which is approximately $0.97 or N1649 per liter. In Ghana, petrol is priced at Ghc 14.35 per liter for Super XP, which is approximately $0.90 or N1,530 per liter.

Meanwhile, in The Gambia, the cost is D77.89 per liter, equivalent to $1.09 or N1,853 per liter. These prices are significantly higher compared to Nigeria, further fueling the smuggling of petrol across borders.

Smugglers are reportedly using various methods, including waterways, land borders, bottles, and cans, to conduct illegal petroleum trafficking.

Abdullahi Maiwada, the Public Relations Officer for the Nigeria Customs Service, confirmed that petrol smuggling remains an ongoing issue.

He revealed that more than 10 trucks have been seized between June 2024 and now as part of efforts by Operation Whirlwind, a special operation set up to tackle the smuggling and diversion of petroleum products in Nigeria.

The Customs stated: “Between June 2024 and now, we have seized over 650,000 litres of PMS which include more than 10 trucks about to be smuggled to neighbouring countries. We have sealed 17 retail outlets that were involved in aiding and abetting PMS smuggling.

“In terms of the value of seizures, the duty paid value is estimated to be around N700 million. The seizure was recorded across the border areas of Adamawa, Akwa-Ibom, Cross River, Kebbi, Lagos, Ogun and Sokoto states respectively.

“We observed a lot of smuggling activities, product diversion, smuggling of refined products and illegal bunkering around Zone C axis which covers South-South and South-East due to the nature of the terrain, limited manpower and logistics challenges.”

“Operation Whirlwind has made significant strides in combating petroleum product smuggling and diversion in Nigeria. Special Operations continues to face challenges and requires support from stakeholders.

By strengthening collaboration, improving intelligence sharing, and enhancing enforcement efforts, Operation Whirlwind can contribute to a more secure and sustainable energy sector in Nigeria.”