The Nigerian National Petroleum Corporation (NNPC) and the Nigeria Customs Service (NCS) are collaborating to curb smuggling of petroleum products outside Nigeria’s borders.
The Group Managing Director of the NNPC, Dr Maikanti Baru, said this when he paid a courtesy visit on the Comptroller-General of the NCS, Col. Hameed Ali rtd.
Baru blamed independent marketers for cross-border smuggling, and petroleum products diversion.
According to him, these factors are inimical to the efficient supply and distribution of petroleum products across the country.
He said the increase in fuel price in the international market and the corresponding increase in petrol imports, had introduced a price differential between Nigeria’s regulated market and the deregulated market in neighbouring countries.
Baro presented a pictorial chart portraying Nigeria in the middle selling pump price of petrol at N145, its neighbours: Ghana at N311, Togo – N308, Benin Republic, N292.8, Niger – 367, Chad, 326.35, and Cameroon at N400 per litre.
“There has been a heightened consumption growth from less than 30 million liters per day in August 2017, to an average of over N500 million litres per day with a peak of 84.2 million litres on Dec. 8, 2017.
“The high consumption volume indicates hoarding, diversion and possible smuggling to neighbouring countries.
“During the recent petrol supply and distribution challenge, it was observed that unpatriotic marketers were exploiting both land and coastal borders to smuggle out petroleum products meant for the Nigerian market due to sheer greed.
“This unwholesome act is supported by price differential between Nigeria’s official petrol price of N145 per liter and that of neighbouring countries,’’ Baru said.
He said the activities of the smugglers had been heightened by “their ability to move petroleum products in trucks, cars motorcycles, drums, jerrycans and other means of evacuation.
“Their movement is especially from filling stations along land borders as well as ships, barges, vessels into neighbouring countries for sale at higher unregulated prices is quite worrisome.
“NNPC is worried that continued cross-border smuggling of petroleum products will deny Nigerians the benefits of Federal Government’s benevolence of keeping a fixed retail price of N145 per liter.’’
He acknowledged the support of the NCS in expediting clearance of vessels carrying petroleum products to combat persistent queues at filling stations, and urged more support for incoming vessels.
“We appreciate you for expediting clearance for those vessels and ask for more support to clear our spare parts.
“We have a huge cache coming in, keeping in mind President Muhammadu Buhari’s mandate that our refineries must work by 2019,’’ he said.
According to him, the regulated price of N145 is increasingly difficult to keep up with as it is only NNPC filling stations that sell the product at N145.
“Independent marketers sell between N170 and N180, and N200 in places like the South-East where it is most difficult to control but our aim is that N145 prevails around the country.
“There are 235 registered filling stations across Lagos borders, but there are also 150 illegal filling stations there.
“We have close to 2,201 filling stations across the nation’s borders, but there must be close to that number that operates illegally.
“There is the need for your marine patrol to be very active. We have a lot of problem with Akwa Ibom and Cross River.
“These are two states where we have utmost difficulties in clearing queues.
“We sent a lot of trucks there but the trucks virtually vanish.
“We liaised with civil defence to monitor each truck but the trucks still don’t get to their destinations.
“The high consumption can only continue if there is continuous smuggling and that is why we need your support to save the country over N300 billion by ensuring that smuggling does not continue.’’
Responding, the Customs boss said the price differential was of grave concern to the nation, but, however, added that a change in policy could help to curb smugglers’ activities.
“You know in Nigeria, our biggest problem is greed, as long as there is a differential in landing cost, marketers would be tempted to divert petroleum products.
“If we cough out N3 trillion for these subsidies you mentioned, then there is a problem. If these products are not getting to the desired consumers, can we not have a change in policy.’’
The NCS boss said the borders were porous, especially in the North during the dry season, adding that with the right policies and adequate information in place, his men could monitor adequately.
“A town of less than 200,000 people has more than 35 filling stations from your charts. I am sure 20 per cent of people in that town do not own vehicles, so what are the filling stations doing around the borders?
“Our intelligence unit can work with your intelligence department to interject the smugglers if we have enough information. We need to collaborate on getting the information as at when due.’’
Ali advocated that there must be punishment and control for marketers that divert products.
“If a person diverts a product, he should lose his license. If there is no punishment for anyone going against the law, he would keep repeating the crime.
“I don’t mind. We can set up a joint committee to collaborate, monitor and work out a road map in curtailing these things.
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