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Smuggling: Kyari Hails Customs, Says PMS Evacuation To Niger, Others Reduced By 7 Million Litres

The Whistler 2024/10/5

The Group Chief Executive Officer of the Nigerian National Petroleum Company Ltd, Mr. Mele Kyari om Friday paid a courtesy visit to the Comptroller General of Nigeria Customs Service (NCS), Mr. Bashir Adewale Adeniyi.

The meeting was held at the headquarters of the Nigerian Customs Service in Abuja.

During the visit, Kyari commended the rapid impact of the NCS’ “Operation Whirlwind” in reducing the smuggling of Premium Motor Spirit (also known as petrol) across Nigeria’s border communities.

According to the NNPC Boss, PMS evacuation to border states has now decrease from 32 million liters per day to about 25 million liters within just two months.

Both parties pledged to strengthen collaboration in sustaining the onslaught against cross-border smuggling, so as to attain Nigeria’s energy security.

The Federal government had in May last year removed the subsidy on petrol, which raised the price from about N197 to about N650 per litre.

While the average price of petrol in Nigeria was about N650/litre, the average cost of the product in neighbouring countries was N1,787/litre, a development that heightened PMS smuggling out of Nigeria.

The Comptroller-General of the Nigeria Customs Service, Adewale Adeniyi, had last month said the NCS had to join forces with the Office of the National Security Adviser to tackle the menace.

He had said, “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.

Speaking further, Adeniyi had 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 opensource.”

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 response to the issue of fuel smuggling, he said the NCS in close collaboration with the NSA initiated Operation Whirlwind.

This nationwide operation aims to: ensure that Nigerians enjoy the full benefits of fuel price deregulation in line with the vision of President Bola Tinubu, defend the national currency and reduce pressures that may be attributed to the activities of smugglers, Identify, dismantle and disrupt cartels of smugglers operating within the ecosystem and raise awareness of the local communities and solicit their support to achieve these objectives.

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