Business
Smuggled Nigerian petrol floods W’African markets, sells N1,700/litre
The Federal Government, on Monday, raised the alarm over the renewed smuggling of Premium Motor Spirit, popularly called petrol, following the massive hike in the pump price of the commodity in neighbouring countries.
It stated that while the average price of petrol in Nigeria was about N701/litre, the average cost of the product in neighbouring countries was N1,787/litre, a development that heightened PMS smuggling out of Nigeria in the past two weeks.
The Comptroller-General of the Nigeria Customs Service, Adewale Adeniyi, who disclosed this at a press conference in Yola, said the NCS had to join forces with the Office of the National Security Adviser to tackle the menace.
He said, “Today, 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.
PMS prices
Speaking further, Adeniyi 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 his speech, which was made available to our correspondent in Abuja, he said, “The (NMDPRA) report shows significant changes in evacuation patterns that are not justified by corresponding economic and demographic changes, particularly in border states that share contiguous borders with our neighbours.
“Between April and May 2024, Borno and Kebbi states recorded 76 and 59 per cent increases in evacuations, ranking among the top three states. On a year-on-year basis (May 2023 and May 2024), Sokoto and Taraba states recorded the most substantial increases in evacuations, with 247 and 234 per cent increases, respectively.
“Border states like Katsina and Kebbi also recorded more than 50 per cent increases in evacuation. These discrepancies, along with the price disparity between domestic PMS (N701.99) and neighbouring countries (N1,787.57), raise concerns about the actual delivery of PMS and the potential for smuggling.”
Adeniyi said credible intelligence on activities around border areas corroborated these suspicions.
“In response to the alarming increase in fuel smuggling, the NCS in close collaboration with the NSA initiated Operation Whirlwind. This nationwide operation aims to: a. Ensure that Nigerians enjoy the full benefits of fuel price deregulation in line with the vision of President Bola Tinubu.
“b. Defend the national currency and reduce pressures that may be attributed to the activities of smugglers. c. Identify, dismantle and disrupt cartels of smugglers operating within the ecosystem. d. Raise awareness of the local communities and solicit their support to achieve these objectives,” he stated.
Anti-smuggling team
He said the operations, which were guided by credible intelligence and empowered by the new Customs Act 2023, target illegal exportation, particularly of petroleum products, ensuring their availability within the country and conserving government resources.
“Coordinated by a Comptroller of Customs, the operation covers all NCS Zones (A-D), involving selected officers trained and equipped to handle the task with strict adherence to professionalism.
“Collaboration with the ONSA and the NMDPRA supports the operation, utilising internal and external sources. This operation was launched approximately two weeks ago,” Adeniyi stated.
According to him, the NCS had made some significant strides in the ongoing Operation Whirlwind, aimed at curbing the smuggling of Premium Motor Spirit out of the country.
“In the past two weeks we have received credible intelligence on the relative stability of the price of PMS around border states, this is easily attributed to disruptions in the operations of smugglers. Within seven days of intensive operations, a total of 150,950 litres of PMS, valued at N 105,965,391, have been intercepted at various locations nationwide.
“The seizures include: a. On Friday, May 31, 2024. A total of 45,000 litres of PMS in a tanker was seized at Mova, Adamawa. b. On Saturday, June 1, 2024, a total of 45,000 litres of PMS in a tanker was seized at Mubi, Adamawa. c.On Monday, June 3, 2024, a total of 2,375 litres of PMS in 95 25-litre jerrycans were seized at Mubi, Adamawa State.
“d. On Wednesday, June 5, 2024, a total of 4,450 litres of PMS in 178 25-litre jerrycans were seized in three different locations, including Song-Wuroboki, Mubi-Sahuda road and Gidan Madara
– Sahuda road all in Adamawa. e. On Thursday, June 6, 2024, a total of 20,030 litres of PMS in 25 and 30-litre jerrycans were sized in various locations across
the country including Maiha, Adamawa State, Illela, Sokoto and Agbaragba Creek in Mfum border of Cross River State.
“f. On Friday, June 7, 2024, a total of 32,900 litres of PMS were seized at border locations in the North-East and South-West axis of the country. A total of 17,500 litres was recorded in Mubi, Adamawa State, while 15,400 litres was recorded around Imeko Obada Road in 616 25-litre jerrycans. g. On Saturday, June 8, 2024, a total of 8,525 litres of PMS were also seized in two separate locations in Owode (Owode-Ilaro road and Owode-Atan road) in Ogun State.”
Adeniyi stated that in addition to the ongoing operations under Operation Whirlwind, the Customs Area Commands remained vigilant against the illicit activities. of smugglers targeting PMS.
He said the service had recorded significant seizures of PMS from unpatriotic individuals attempting to deprive Nigerians of access to fuel and cause unnecessary hardship.
“While the operation continues, our Federal Operating Units and Marine Commands have intercepted a total of 129,185 litres of fuel valued at N90,558,685. Notably, 54.48 per cent of these seizures occurred in the North-West region, including states such as Katsina, Kebbi, and Sokoto, while 23.87 per cent of the seizures were recorded in the North-Eastern part of the country, particularly in states like Taraba and Adamawa.
“It is worth noting that these states have also seen a significant increase in fuel evacuation as reported by the NMDPRA. It is now evident that the recent rise in the distribution of PMS to border states is driven by the activities of smugglers.
“A combined diversion of 280,135 litres of PMS worth N196,524,075.50 raises serious economic concerns with broader implications on national security. The quantum of this diversion is equivalent to more than 84 per cent of the daily evacuation of PMS to states like Ekiti and Jigawa. It also represents around 32.57 per cent of the daily evacuation to the border states of Borno and Katsina according to the data on average daily evacuation obtained from NMDPRA,” Adeniyi said.
He noted that if these activities were left unchecked, they could further deteriorate the country’s economic situation and exacerbate current foreign exchange challenges.
The customs helmsman stated that the influx of unaccounted foreign currency could be channelled into funding illegitimate activities, including the support of non-state actors engaged in criminal activities against the Nigerian state.
“These issues have serious implications for national security, making it imperative to check, curtail, and dismantle these illicit operations. Achieving this requires the cooperation and collaboration of patriotic government agencies, exemplified by the ongoing Operation Whirlwind.
“Under this collaboration, efforts are being made to resolve existing gaps in the following areas: a. Sharing of Critical Data Among Agencies. Ongoing engagement with the NMDPRA and the ONSA focuses on sharing daily data on PMS loading. This will enable the NCS to track the movement and delivery of these products to their intended locations.
“b. Monitoring movement of PMS lifting. The NCS will enforce strict monitoring of tanker movements, ensuring that
PMS products lifted from NMDPRA facilities are delivered to approved locations. c. Use of Manual Systems by Independent Marketers. Independent marketers are advised to automate their existing fleet management systems to enable tracking and geo-fencing
capabilities.
“d. Proliferation of fuel stations at border areas. The NCS will collaborate with relevant licensing agencies to manage the proliferation of petrol stations around border areas,” Adeniyi stated.
He said these measures were essential and would be rigorously implemented to ensure strict adherence to government expectations.
“However, in enforcing these measures, we are mindful of the potential challenges they may pose to border communities. Our operations will not obstruct or interfere with the legitimate activities of patriotic citizens in these areas. I will conclude with a stern warning to the perpetrators of these illicit acts: Desist immediately or face the full wrath of the law,” Adeniyi declared.
Petrol subsidy
On May 29 2023, the Federal Government removed the subsidy on petrol.
Earlier in February that year, the government declared that it had to shut down 270 filling stations in a bid to stop the smuggling of petrol out of Nigeria.
It said the activities of smugglers pushed Nigeria’s petrol consumption daily to about 67 million litres because a large volume of the product was moved out of the country illegally by smugglers.
The PUNCH precisely reported on February 3, 2023 that the Federal Government had to deploy operatives of the Department of State Services on tankers transporting petrol to filling stations to halt the diversion and smuggling of the product.
The report stated that over 120 DSS officers were deployed at the time to follow fuel tankers to their various retail outlets in Abuja, as more security agencies were drafted into the exercise for nationwide coverage.
This came as the government also revealed at the time that it shut down over 270 filling stations for being involved in diverse infractions such as hoarding and selling above-approved price, among others.
The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, and the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, disclosed this in Abuja during a live television programme monitored by our correspondent.
Speaking on efforts being put in place to halt the diversion and cross-border smuggling of PMS, Kyari had said, “So much is going on, there are government security interventions.
“I know the kind of work that we do with the security agencies, for instance, in Abuja alone, we have over 120 DSS officers following every truck to fuel stations and we are activating this across the country.
“We are ensuring that we get other government security agencies to follow these trucks to their locations, in order to be very sure that these trucks actually get to the fuel stations and there are not sold on the way and they don’t cross the borders.”
Kyari had earlier explained at a stakeholders meeting in Abuja that Nigeria’s fuel was smuggled to other countries, as he insisted that the scarcity of PMS at the time was not due to the elections that were held in February 2023.
“There’s no dispute about this that our fuel gets to other countries, including in marine containers. We have evidence now that some of our customers are actually taking investors to other countries and we will get to the root of this.
“The appropriate government security agencies will deal with this. But this is the reality that we are dealing with. You do have cross-border smuggling, either in the form of round-tripping or whatever name we call it.
“So the 66 or 67 million litres that you have always seen include all these, the cross-border smuggling volumes. And it means that anytime we don’t satisfy those markets, it will affect your domestic market. This is the reality that we are dealing with,” he stated.
The NMDPRA boss, while speaking on sanctions taken against downstream operators who flouted the approved regulations, stated that over 270 filling stations and seven depots were closed at the time.
Ahmed had said, “Because of control that we have in most of the major cities, whether it is Port Harcourt, Lagos, Ibadan, Abuja, etc, the marketers tend to go to the rural areas where you can buy petrol at a high price.
“And, of course, it is our responsibility as a regulator to ensure strict monitoring and enforcement. What we did was that a couple of weeks ago we had to shut about seven depots because of the inflation of their ex-depot price.”
PUNCH
Business
No Bad Blood Over New Cement Factories, But Our Mining Rights Run Till 2045 — Ibeto Tells Ebonyi Govt
ABAKALIKI, EBONYI STATE — Billionaire industrialist and Chairman of Ibeto Group, Dr. Cletus Ibeto, has clarified his position on plans by the Ebonyi State Government to establish a new cement manufacturing plant, saying he has no objection to fresh investment in the state provided his company’s existing mining rights are respected.
Ibeto, who is also a core investor in the Nigerian Cement Company (Nigercem), said the proposed development should not interfere with areas covered by valid mining leases held by his company.
“We are not against the establishment of new cement factories in Ebonyi State. However, such developments must not interfere with or overlap the specific areas where Ibeto Group holds valid Mining Lease Licences issued by the Federal Ministry,” Ibeto stated.
He said the company’s statutory mining leases covering limestone deposits in the Nkalagu axis remain valid until 2045.
Ibeto stressed the need for proper delineation and mapping of mining areas to prevent conflicts between existing title holders and new investors seeking to establish businesses in the state.
Under Nigeria’s legal framework, mineral resources are vested in the Federal Government, with mineral titles administered through the Federal Ministry of Solid Minerals Development and the Mining Cadastre Office.
Nigercem Ready to Resume Operations
Addressing concerns over the future of the historic Nigercem plant, Ibeto said Ibeto Group remains committed to reviving the facility and is ready to commence work once outstanding administrative issues with the state government are resolved.
He said the company’s position should not be interpreted as opposition to new investment in Ebonyi, stressing that his concern was the protection of legally acquired mining rights.
The development could pave the way for both the revival of Nigercem and the entry of new investors into Ebonyi’s cement industry, provided the respective mining areas are clearly mapped out and existing legal titles are respected.
Business
Patience Jonathan Hails Azikel Boss Eruani as ‘Small Boy’ She Mentored Into Billionaire League
She said her guidance was behind his bold entry into big business at a relatively young age.
The former First Lady spoke on Tuesday in a video which went viral on Thursday during an inspection tour of the Azikel Refinery in Obunagha, Bayelsa State, alongside other dignitaries.
She said she personally introduced Eruani to billionaire businessmen, Aliko Dangote and Aminu Dantata, and pushed him to aspire to their level despite being the youngest among them.
“He’s a boy that I brought up. We are always together. Although he’s the little one among us when we are friends — Dangote, Seyi, Dantata, Eruani — among us, he’s the smallest. But I made sure he followed the Dangotes, he followed Dantata.
“Because I’m a woman in their midst, I made sure I told this small boy, ‘Go and follow them, and stop the grammar.’ But when he told me that one day he would be like Dangote, I said, ‘You’re thinking too high.’ I prayed to God to grant him his heart’s desire,” she said.
The former First Lady also recalled how the immediate past APC administration under Muhammadu Buhari initially failed to grant Eruani a refinery licence before eventually approving three.
“During the Buhari administration, he and others came to me and told me they were going to apply for a refinery. I told him, ‘Eruani, your brother, the President, did not give you a refinery.
“Is it the APC government that will give you one?’ I prayed it would happen. But later, they came back and told me they had been given three refineries,” she said.
The 25,000 barrels-per-day plant is a private hydro-skimming refinery designed to process condensate into petrol, diesel, aviation fuel, kerosene and other products.
It is set to become Nigeria’s second-largest full-slate refinery and the first major privately owned refinery in the Niger Delta.
The Managing Director/Chief Executive Officer of the Niger Delta Development Commission, Samuel Ogbuku, who joined the inspection tour, commended Eruani for his perseverance, noting that he had attended the project’s groundbreaking ceremony eight years ago.
Ogbuku described the refinery as an inspiration and a potential catalyst for investment, job creation and economic growth in Bayelsa State, and urged residents, particularly youths, to key into the opportunities it would create.
He also praised the Bayelsa State Government for improving road infrastructure leading to the refinery site and called for continued support for the project.
Governor Douye Diri, who was represented at the inspection by his deputy, Peter Akpe, has consistently backed the project, which is expected to employ hundreds of workers and drive industrialisation in the state.
Other dignitaries at the event included the Chairman of the Bayelsa State Council of Traditional Rulers, King Bubaraye Dakolo; Vice President of Azikel Group, Presley Asemota; and Isaac Yalah, among others.
A market check on Tuesday showed that NNPCL outlets in Abuja and nearby areas adjusted their petrol price from N1,155 per litre to N1,270 per litre.
The latest adjustment represents an increase of N115 per litre by the state-owned oil company.
The new price change follows recent increases by depot owners and petroleum marketers, who have adjusted their rates twice within a week.
The latest development also comes days after Dangote Refinery resumed the sale of refined petroleum products in dollars, a move that has raised concerns among industry players over the direction of fuel pricing in the country.
The Federal Government has disclosed that 13 of the 50 oil and gas blocks offered in the 2025 Licensing Round will be returned to the licensing basket after failing to attract bids from prospective investors.
The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, disclosed this on Tuesday at the 2025 Commercial Bid Conference in Abuja.
Eyesan said that although 50 blocks were initially put up for bidding, prospective investors showed interest in only 37.
“At the end of the exercise, we had 50 blocks on offer, but we only had representation for 37 of those 50 blocks. Thirteen of those blocks will be returning back to the basket,” she said.
She further disclosed that 143 companies participated in the commercial bid process, submitting about 200 bids for the available oil and gas assets.
“We have a total of 143 companies showing interest for 200 bids. That, for us, was remarkable, and I must say thank you,” Eyesan stated.
According to her, nearly 300 companies initially expressed interest in the licensing round, which she described as a sign of renewed investor confidence in Nigeria’s upstream petroleum sector.
“When we started the journey, we got interest from almost 300 companies. I repeat, almost 300 companies. That, in my view, was an indication that the tide has turned for Nigeria,” she said.
She explained that the number of interested companies was reduced to 196 following the prequalification stage, before the process moved to the technical and commercial evaluation phases.
“From the almost 300 interests that we got, we moved to the pre-qualification stage, and that number was pruned down to 196,” she added.
The 2025 Licensing Round was launched on November 11, 2025, in accordance with the Petroleum Industry Act 2021, with 50 oil and gas blocks put up for bidding across seven sedimentary basins.
The assets comprise 16 Niger Delta onshore blocks, 18 shallow-water blocks, one deep offshore block, three blocks in the Benin Basin, four in the Anambra Basin, four in the Chad Basin and four in the Benue Trough.
The bid portal opened on December 1, 2025, while a pre-bid conference was held in Lagos on January 14, 2026, to provide prospective investors with guidance on the bidding requirements.
Registration and prequalification submissions closed on February 27, 2026, with the prequalification process completed on March 16.
The NUPRC said winning bids are being determined through a weighted evaluation that considers signature bonus commitments, proposed work programmes and performance security. The process combines technical and commercial scores rather than relying solely on financial offers.
The framework is aimed at ensuring that Nigeria’s petroleum assets are awarded to investors with the financial capacity, technical expertise and operational strength required to accelerate exploration and production in the country’s upstream sector.
The new pricing template, which took effect on July 13, 2026, also pegs Automotive Gas Oil (diesel) at $1.087 per litre and Aviation Turbine Kerosene (ATK) at $0.942 per litre, while coastal deliveries of PMS have been fixed at $1,044.62 per metric tonne.
The development marks the end of naira payments for refined petroleum products, a policy introduced after the commencement of the Federal Government’s naira-for-crude initiative on October 1, 2024.
In a notice issued to petroleum marketers and customers, the refinery announced that all previously issued naira-denominated Proforma Invoices and Deal Recaps for both gantry and coastal transactions had become invalid.
The notice, signed by the refinery’s Group Commercial Operations, directed customers not to make payments against the cancelled invoices, stating that all transactions would now be conducted in United States dollars.
Under the revised pricing schedule, petrol supplied through the gantry will sell for $0.779 per litre, diesel for $1.087 per litre, aviation fuel for $0.942 per litre, while coastal PMS supplies will cost $1,044.62 per metric tonne.
The refinery, however, clarified that the transition does not affect Liquefied Petroleum Gas (LPG), which will continue under its existing payment arrangement.
Industry sources said the decision followed a growing imbalance between the currency used to procure crude oil and that used to sell refined products.
According to the sources, the refinery now receives a larger share of its crude oil from the Nigerian National Petroleum Company Limited (NNPCL) under dollar-denominated supply arrangements, while a significant volume of its refined products had continued to be sold locally in naira.
The resulting mismatch, coupled with exchange-rate volatility and fluctuations in global crude oil prices, reportedly increased the refinery’s foreign exchange exposure and prompted the adoption of a uniform dollar-based pricing framework.
A source familiar with the development explained that the shift became necessary as the volume of naira-denominated crude supplies declined relative to dollar-based crude cargoes.
“The refinery is receiving fewer naira-denominated crude cargoes while a larger proportion of its refined products has continued to be sold in naira. That imbalance, combined with foreign exchange volatility, made the transition to dollar pricing inevitable,” the source said.
The decision is expected to have significant implications for petroleum marketers who source products directly from the refinery for nationwide distribution. It could also influence retail pump prices, depending on movements in the exchange rate, international crude oil prices, logistics costs and marketers’ operating expenses.
The Federal Government had introduced the naira-for-crude policy to encourage domestic refining, reduce pressure on foreign exchange demand and stabilise fuel prices. However, industry stakeholders have recently reported implementation challenges, noting that a growing proportion of crude supplies to local refiners has reverted to dollar-based transactions.
Analysts believe the latest development underscores the continued foreign exchange challenges facing Nigeria’s downstream petroleum sector despite efforts to deepen local refining and reduce dependence on imported fuel.
-
Politics4 days ago2027: Odii Will Not Step Down, Says Spokesperson
-
EverydayNews Telescope4 days agoNkalagu Cement Factory: Project or 2027 Political Promise?
-
News4 days agoHow NAF Plane Vanished From Radar Shortly After Take-Off, Crashes In Ondo Swamp
-
News4 days agoNo Survivor Found Yet in Ondo Air Crash — Aiyedatiwa
-
Crime3 days agoCourt Denies Alleged Fake Pastor Bail as Seven Witnesses Await Trial
-
News2 days agoCurfew Continues as Soludo Sets Up Commission of Inquiry Over Aguleri–Umuoba Anam Clash
-
Education2 days agoIhejirika Hails Mbah’s Infrastructure Drive as Coal City University Inaugurates Governing Council
-
News3 days agoNAF Crash Claims Pilot 16 Days After Wedding