NNPC Reveals Why Nigeria’s Petrol is Smuggled to Neighbouring Countries

The Nigerian National Petroleum Corporation (NNPC) has said that petrol smuggling to neighbouring nations is being aided by differential prices in Nigeria and other countries.

This was disclosed by the Group Managing Director, Nigerian National Petroleum Corporation, Mele Kyari in a statement signed by the Group General Manager, Group Public Affairs Division, Garba-Deen Muhammad.

According to the statement, Kyari said that with a price difference of over N100 per litre between what is sold in Nigeria and in neighbouring countries, it was difficult to cage the activities of petrol smugglers.

He said while the corporation was working in concert with other agencies to combat the menace and had made noticeable progress, the battle was yet to be won.

NNPC stated, “As long as there is arbitrage between the price that you sell and what is obtainable elsewhere, you can be sure that it is very difficult to contain the situation.”

Kyari emphasised that the activities of smugglers had also made it difficult for the country to determine the actual consumption figures for petrol, noting that the corporation could only know what was trucked out from loading depots across the country but could not determine how much of that was consumed in-country.

Also, NNPC has foreclosed immediate plans to suspend the fuel subsidy regime.

The GMD said the Corporation will have to continue with fuel subsidy till 2022 and, as such, has made provisions for it in the 2022 Appropriation.

“There is an ongoing process that is engaging  members of the organized labour, civil society organizations and many other institutions of Government  and other critical stakeholders to arrive at a landing on how and when we can exit the subsidy regime to be very precise.

He said the Government is not sure that it can conclude the process of exiting the subsidy regime before the end of 2021 or early 2022, hence the provision of fuel subsidy in the 2022 Appropriation.

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