Criminals Smuggle 30% of Petrol Meant for Nigeria to Neighbouring Nations

The Major Oil Marketers Association of Nigeria (MOMAN) has said subsidy removal could curb fuel smuggling to neighbouring countries.

The association said the absence of subsidies in neighbouring nations has created the incentive to smuggle around 30 percent of petrol meant for Nigeria to those neighbouring nations without petrol subsidies.

Adetunji Oyebanji, the Chairman of the association, said the nation can no longer sustain subsidy payment given current economic realities.

He argued that the absence of subsidies in neighbouring nations have created room for smuggling as oil marketers gain more selling to them. This was evident in the wide drop in daily fuel consumption from 62 million litres per day to about 54 million litres after President Muhammadu Buhari shut down Nigeria’s land borders.

“In fact, absence of subsidies in our neigbouring countries has for many years fuelled the incentive to smuggle an estimated 30 per cent of our daily consumption; in effect, we have been subsidising our neighbours,” MOMAN stated.

It added, “We must understand that our oil resources are running out. If this is not enough cause for concern, every day, we see alternative forms of energy being developed and becoming more viable.

“This inevitably will mean that one day in the future, we will either run out of oil or no one will want to buy it because of cheaper alternatives.”