The increase in petrol pump prices in neighbouring countries has prompted the federal government to become concerned about the resumption of product smuggling.
While the average cost of petrol in Nigeria is approximately N701/litre, it is N1,787/litre in neighbouring countries.
This difference in pricing has led to an increase in PMS smuggling out of Nigeria over the last two weeks.
Adewale Adeniyi, the Comptroller-General of the Nigeria Customs Service, revealed this information at a press conference in Yola.
He stated that the NCS and the Office of the National Security Adviser must collaborate to combat the threat.
He recalled that the federal government made the audacious strategic choice to stop providing fuel subsidies around a year ago.
According to Adeniyi, this important action was intended to relieve pressure on Nigeria’s foreign exchange reserves, diversify economic growth, and free up significant money that might be transferred to other productive areas of the economy.
Fuel prices were immediately adjusted and increased to reflect the current situation.
Comparative studies, however, indicate that, despite the financial hardship and inflationary pressures on households, Nigeria continues to have the lowest fuel prices in the West and Central African areas.
Speaking further, Adeniyi said,
In a Punch report, the customs boss claimed that although this comparative pricing advantage benefited Nigerian people, it also provided a profitable incentive for smuggling PMS out of the country, where costs were two to three times higher.
He claimed that the Nigeria National Midstream and Downstream Petroleum RegulatAuthority’sty’s data on the average daily evacuation of PMS to different states supports this.
He noted that the operations, which were enabled by the new Customs Act 2023 and directed by reliable intelligence, target unlawful exporting, especially petroleum items, guaranteeing their availability domestically and saving public funds.
TimesNow.com.ng reported that the Central Bank of Nigeria (CBN) has adjusted the foreign exchange rate for import duties to N1,530 per dollar
The increase represents a 6.13% increase compared to the N1,441.58 adopted on May 6, 2024.
The adjustment was observed on the Nigerian government’s single window trade portal on Friday, May 17, 2024.
Source: TimesNow.com.ng
