As of June this year, the Nigerian National Petroleum Corporation (NNPC) put the volume of petrol smuggled across Nigeria’s borders at a whopping 42 million litres per day, which resulted in the increase in estimated daily consumption of 60 million litres to 102 million litres.
The Customs boss, who spoke at an interactive session with members of the House of Representatives Committee on Finance on the 2022-2024 Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP), emphatically stated that the DPR issues licences to oil marketers to establish petrol stations near the borders, whereas it is illegal to set up fuel stations within 10km to the border.
The Customs Comptroller said rather than issue permits to firms to establish petrol stations in the neighbouring countries to stem products smuggling, DPR issues licences to criminals that smuggle Nigeria’s petrol to sister countries, resulting in the increasing daily consumption of PMS in the country and subsidy payments.
Ali lamented that efforts by Customs to end the illicit business was being frustrated by the DPR, which not only shielded the names and lists of these illegal petrol stations owners but was unwilling to cooperate with Customs to stem the tide.
He called for investigation into the figures being released by DPR, pointing out that the agency was unwilling to cooperate with Customs on illegal filling stations around the borders.
“There is a law that says that no Nigerian fueling station should be established within 10km to the border. But the DPR will do their survey, they will issue licences to people to operate there. Our concern is the inflow and outflow,” the Customs chief said.
“That is why we said, filling stations that are 20km of the border should not be given petroleum products. We must monitor DPR. Are these figures really what are being released? This thing keeps going up and down. We had a series of meetings with the DPR. They said most of those filling stations at the borders are illegal.
“So, we said, give us the names and list of those illegal fuelling stations, then we will take care of the legal ones. Three years after, we have not received one name. These are the problems.
“We have also proposed to NNPC, if the price differential is the problem, we have our banks, Zenith Bank, GT Bank, operating in the West coast. What stops us?
“They should establish petrol stations in our neighbouring countries, and move these products at the cost that we sell, and sell to these people. We will make money. We have the market and by doing so we will completely diminish the anxiety or the penchant for smuggling. Because if a Beninoise will get the fuel at the price we are getting and the cost of transportation, which is the minimum, there is no way he will wait for people to import to him at twice the price. We have made this proposal, we have made noise about it, no one seems to listen,” he said.
Whereas petrol is sold at N162 to N165 per litre in Nigeria, the smuggled product goes for between N300 and N500 per litre in Cameroun, Chad, Niger, and Benin Republics.
In June, the Nigerian National Petroleum Corporation (NNPC) raised the alarm over the escalating incidence of petrol smuggling across Nigeria’s borders, which it puts at a whopping 42 million litres per day.
The corporation said the unbridled smuggling has increased Nigeria’s estimated daily consumption of 60 million litres to 102 million litres.
With the increasing menace of petrol smugglers, the NNPC said, the subsidy that the government pays on petrol every month, in order to keep the pump price of petrol stable at N162 per litre, now hovers between N140 billion and N150 billion.
The development, it said made the corporation to be unable to contribute to the Federation Account, as the subsidy kept wiping out the little gains made from rising international oil prices.