Despite the Nigerian government’s removal of fuel subsidies, the Nigeria Customs Service (NCS) reports that fuel smuggling remains a lucrative activity due to significant price disparities between Nigeria and its neighboring countries.
At a press briefing in Abuja on Tuesday, Comptroller General of Customs, Adewale Adeniyi, explained that the price of Premium Motor Spirit (PMS) in Nigeria, ranging between ₦880 and ₦950 per liter, is considerably lower than in neighboring countries. For instance, PMS sells for approximately ₦1,600 to ₦2,000 per liter in countries like Cameroon, Niger, and the Benin Republic.
This price arbitrage continues to incentivize smugglers to illegally transport fuel across borders. In response, the NCS has initiated “Operation Whirlwind,” a targeted anti-smuggling campaign aimed at curbing the illicit export of petroleum products.
The NCS’s first-quarter 2025 performance report highlighted that petroleum products, alongside rice, were among the most commonly seized smuggled goods, with total seizures valued at ₦7.7 billion. Additionally, the service reported revenue generation of ₦1.75 trillion from trade activities worth ₦36 trillion during the same period.
The persistence of fuel smuggling underscores the challenges faced by Nigerian authorities in addressing cross-border economic disparities and enforcing trade regulations.