Petroleum Smuggling: Customs Boss Expresses Concern over Impact on Nation’s Economy

Hammed Shittu in Ilorin

The Comptroller General of the Nigeria Customs Service (CGC), Mr. Bashir Adewale Adeniyi, has expressed concern over the increasing rate of petroleum product smuggling despite the removal of oil subsidy by the federal government, describing the trend as a major threat to the nation’s economy.

The CGC boss made the remarks on Monday during an official visit to the Kwara State Customs Area Command headquarters in Ilorin.

He said: “Since the implementation of the fuel subsidy removal by the government, we have observed a very disturbing trend in sophisticated smuggling operations across our borders.

“This is despite the expectations that fuel subsidies are expected to bridge the gap.

“There are lots of disparity that we still experience when we compare the fuel prices in our neighboring countries with what we have here.

“Petroleum prices in Nigeria now are below N1,000. Despite the fact that this figure seems to be higher, it is significantly lower when compared to other prices in neighbouring countries like Benin Republic and Cameroon which goes for around N1700 and N2,000 respectively in our local currency.”

He said: “Despite our efforts to curb these activities collaboratively, the lucrative arbitrage economy has continued to incentivise more sophisticated smuggling operations in the borders.

The Comptroller General said the sophistication of smugglers demand more than conventional approach adding that the persistent challenge of petroleum smuggling continues to pose a serious challenge to our economy.

He stated that the persistent challenge of fuel smuggling remains worrisome and must be tackled decisively.

The Customs boss warned that unless authorities engage all segments of society in the fight against smuggling, the country may suffer severe economic losses.

“This menace constitutes a great danger to our economy, and we must deploy all necessary measures to curb it. The culprits will be brought to book in accordance with the law,” he said.

He however noted that significant progress has been recorded in curbing fuel smuggling through the deployment of advanced technology.

 He said with about 17 land borders in the country, the fight against petroleum smuggling, among others, would require more advanced technology and the involvement of the critical stakeholders.

He therefore urged the people of the country and other security agencies to continue to support the Customs in the bid to tackle the oil smugglers in the country.

On the success so far recorded in the Kwara State Area Command of the Nigeria Customs Service, Adeniyi said, it has intercepted a total of 800 jerry cans of 25 litres of PMS including a 33,000 litres truckload worth N53 million in Kwara State.

He said the period of the seizure was from the middle of January to February 10, 2025 and complemented its ongoing crackdown on smugglers in the country.

He described the Kwara border with Benin Republic as a very strategic axis adding that “you are going to be seeing senior officers more often than before now because of the development”.

According to him, with the launch of its “Operation Whirlwind”, NCS has also achieved significant results.

These achievements, he noted, also include the “sealing of 12 retail outlets for smuggling activities, seizure of 460,000 liters of PMS destined for neighboring countries, confiscation of 23 means of conveyance and over 8,000 kegs of PMS.

He added that 7 suspects have been arrested while 3 marketers are facing ongoing prosecution for regulatory offences since the operation was started.

Speaking during the visit, the Kwara State Comptroller of Customs, Faith Ojeifo, emphasized that tackling petroleum smuggling must be a collective effort involving all security agencies and members of the public.