While Nigerians endure long hours at petrol stations due to fuel shortages, smuggled fuel continues to supply neighboring Benin Republic and Niger, highlighting border control challenges.
Neighbouring countries like Benin Republic and Niger are benefiting from fuel illegally smuggled out of Nigeria, while numerous Nigerian citizens have to monitor petrol stations for the chance to refuel their vehicles.
During our correspondents’ visit to both countries, they found that contraband gasoline was being sold by illegal traders at rates lower than those offered in gas stations.
The research findings indicate that drivers frequently support black marketers’ businesses due to their lower rates compared to buying from filling stations.
Since the removal of fuel subsidy by President Bola Tinubu on May 29, 2023, Nigeria has experienced its fifth significant fuel crisis.
As a consequence of the removal, fuel prices experienced an abrupt surge that prompted frantic purchasing habits, which ultimately resulted in broad-scale scarcity and a subsequent escalation in living expenses. Petrol pump rates skyrocketed from approximately N200 to over N500 per litre.
In September 2023, another hike in petroleum pump prices triggered a second fuel shortage which caused long lines of vehicles and people waiting to purchase gas in major cities such as Lagos.
Another scarcity occurred in Nigeria due to distribution challenges and increasing global oil prices, during the month of January 2024.
Shortly before Tinubu’s first year anniversary, the nation experienced its fourth fuel crisis. This resulted in elevated transportation expenses and upheavals to daily routines throughout the country.
The current fuel scarcity experienced in August marks the fifth occurrence within the petroleum crisis.
Benin has an excess of fuel.
Our correspondent’s findings revealed that while Nigeria struggles with a continued lack of petrol, Benin Republic enjoys reliable access to fuel through both smugglers and government-sanctioned vendors.
During a visit to the country, our correspondent uncovered that petrol was being sold at 700CFA per litre, which is equivalent to about N1,850.
While in Cotonou and Calavi, two prominent cities within West Africa, OBASANJONEWS noted an efficient fuel supply system.
There were no long queues at several filling stations in the cities.
The atmosphere was particularly tranquil at the Saint Michelle Roundabout-based Benin Petro Filling Station in Cotonou, for example.
Upon our reporter’s arrival, there was only a single car and two motorcycles observed fueling up using the pair of pumps that were accessible.
The lack of customer activity was striking at the Oryx Filling Station in Dantokpa, where attendants sat idly.
In the course of a 30-minute surveillance, only one motorcycle and three automobiles were observed entering the station. The situation at Jehova Nissi Petroleum Filling Station located in Vedoko district was similar; despite being operational with adequate fuel supply, there were no patrons present during our visit.
At the Agontinkon vicinity, both MRS and Ewell Filling Stations showed a comparable scenario where fuel was in stock. However, minimal customer presence was witnessed. SCB and Sylfrec filling stations located in Calavi also had sufficient supply of fuel but were servicing only a constrained count of vehicles.
According to Philip Umo, a French-speaking worker at Sylfrec Filling Station, the main difficulty they face is not with fuel availability but rather finding customers willing to buy it.
Although there was a stable fuel supply at the filling stations, black market sellers were common on the streets of both Cotonou and Calavi.
The vendors were observed vending fuel in jerrycans for 600CFA, which is below the authorized price of 700CFA. Due to this inconsistency, a lot of drivers chose to resort to illicit means.
According to Justin Asoba, a motorcyclist, there was an excess of fuel which resulted in people engaging in the black market business. He described this as a “surplus”.
Wasiu Olawale, a trader hailing from Nigeria and operating in Benin, remarked that there is an ample supply of fuel available. He further added that most of the fuel comes from Nigeria but costs less in Benin.
Kabiru Usman, a black market trader, stated that he has access to consistent fuel supplies and is willing to share his knowledge on the industry for a fee.
According to Yusuf Bala, a fellow motorcyclist, a substantial amount of fuel traded on the illegal market is transported from Badagry in Lagos State across the border into Benin Republic.
According to him, the business is thriving as they smuggle fuel into Benin where their currency holds more value than the naira, resulting in significant profits.
Niger dealer explains the process of acquiring smuggled fuel.
Illela town, the bustling administrative hub of illela Local Government Area in Sokoto State, lies on Nigeria’s border with Niger Republic and is situated approximately 120 kilometers from Sokoto town.
Despite being just across the border in Illela, where petrol sells at about N1,000 per litre, one of our correspondents found that in Konni, Niger Republic it ranges between N1,250 and N13oo.
Furthermore, it was noted that Niger Republic did not encounter any shortage.
Mallam Abubakar Bello, a commercial motorcycle rider in Illela recounted that the price of fuel remains consistent between Sokoto and Illela.
According to him, the product is being purchased at N1,000 per litre both here and in Sokoto. However, many of us in Illela do not buy from filling stations since their prices are similar to those on the black market.
Mahmoud Sanusi, a driver from Konni in Niger Republic, noted that the price of fuel was similar between the two countries.
According to him, the removal of subsidies by Nigeria’s government had a greater impact on Niger Republic than it did on its own people.
He added that while they have their own source of fuel, government officials with greater purchasing power are the primary customers at local filling stations. He also mentioned a preference for importing cheaper fuel from Nigeria instead of buying locally.
Our correspondent in Konni has uncovered further evidence regarding the sale of smuggled fuel by black marketers, predominantly along the roadside. This illegal trade is priced at 1,250 per litre when converted to their local currency. However, legitimate oil marketers registered with the Niger Republic government are able to sell fuel supplied directly from them for N1,300 per litre within Nigerian territory.
Kaseem Sani, a filling station manager in Konni mentioned that the only means for registered oil marketers to obtain the product is through government channels.
According to him, no filling station in the country could be found selling smuggled fuel from Nigeria.
He added that Nigerian fuel remains cheaper than our own, despite the removal of subsidy.
According to Sani, fuel smuggling from Nigeria has been banned by the government of Niger. However, he mentioned that despite security measures put in place, black marketers always manage to find loopholes.
Confirming the account, Hassan Muhammad, a person involved in illegal trading activities based in Konni, stated that their merchandise was sourced from Nigerian smugglers.
The fuel we acquire is sourced from Nigeria, but not obtained via legal channels. The majority of our suppliers are Nigerians who make the product accessible to us locally.
They utilize the forest trail and occasionally navigate through water routes, but refrain from using the legitimate land boundary.
The product is smuggled, causing varying prices among sellers. Some may sell for as low as 1,100 naira per liter or even less at times.
The outcome is contingent upon your association and capacity to negotiate with the smugglers.
Additionally, he admitted that the smuggled fuel was hidden in jerrycans rather than tankers.
No tanker is used for supply, although I should mention that certain vehicles have a larger accompanying tank capable of holding up to 200 liters of fuel per trip.
I cannot disclose this information, which is why I declined to have my picture taken in order to avoid any potential harm from those close to me.
There are numerous strategies at our disposal, however, the sole method in which we can entice customers is to offer a slightly lower price than what has been set by the government. This accounts for why there may be disparities between our prices and those who acquire their merchandise from Niger Republic’s government sources.
Our correspondent was informed by a source in Tawa, which is another significant city of the Republic of Niger, that private car owners usually resort to black markets for fuel. On the other hand, only companies and government officials purchase from filling stations.
On occasion, the smugglers of Nigerian fuel have transported it beyond Niger Republic to Mali as reported by the source.
Private depots sell petrol for N850.
At Nigerian private depots, the ex-depot price of Premium Motor Spirit (commonly known as petrol) has risen to N850 per litre.
The ex-depot price was reported at around N780/litre by oil marketers last week. However, on Friday it surged to a range between N840 and N850 per litre due to reduced petrol imports from the Nigerian National Petroleum Company Limited.
Independent oil marketers have raised their pump prices due to the exorbitant petrol rates being charged by private depots. A notable surge in fuel prices, reaching up to N1,000 per litre has been observed at various filling stations located mostly in Northern Nigeria.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority, on behalf of the Federal Government, has made a pledge to close down petrol stations found selling fuel at excessively high prices.
On Friday, queues of motorists waiting for petrol at filling stations could still be seen in various locations including Lagos, Abuja, Niger and Nasarawa.
According to marketers, while the price of petrol at NNPC depots was below N600/litre, it had risen to approximately N850/litre at private depots.
Mustapha Zarma, the National Operations Controller of the Independent Petroleum Marketers Association of Nigeria revealed that they are not benefiting much from NNPC’s imported products. Therefore, they search for products allocated to DAPPMAN members and collaborate with them instead.
A majority of the retail fuel stations in Nigeria are under the control of IPMAN, with its members managing more than 80 percent of the outlets.
Zarma stated that depots are currently selling the product to them at a price higher than N800, specifically at N850 in Lagos. According to Zarma, private depot owners obtain the product from NNPC for less than N600 but sell it off at inflated prices.
Regarding whether the Nigerian Midstream and Downstream Petroleum Regulatory Authority has been notified, the IPMAN representative’s response was, “If you inquire with them, they will request proof of payment.”
He clarified that obtaining such receipts was often challenging since payments were not typically made directly to the private depots’ accounts as per their agreements.
He emphasized that numerous dealers require products to continue operating their businesses, and because they are unable to obtain them from NNPC, they have no alternative but to purchase from private depots despite the exorbitant expenses involved.
Zarma stated that currently, the price ranges from N840 to N850 and it has been on a high since last week. This is why in Lagos, you may find the product being sold for as much as N900 or even up to N950. Additionally, Zarma warned that there is a possibility of further increase with prices potentially reaching around N1,000.
As of the filing of this report, there was no response from Olufemi Adewole, who serves as the Executive Secretary for Depot and Petroleum Products Marketers Association of Nigeria to an inquiry regarding the matter.
However, George Ene-Ita, spokesperson for the NMDPRA contended that the reports regarding petrol prices received by regulators from their officials at depots varied.
He said that the prices seen by our depot employees are different because we require them to display daily updated rates at their locations, which do not correspond with N850/litre. The figures conveyed to us by field agents stationed at these depots also differ.
The NMDPRA official stated that independent marketers operating filling stations in Lagos and various other states who distribute their products for an exorbitant price of N900 to N1,000 per litre will be punished if caught.
Ene-Ita expressed that once these outlets are established, the objective is to close them down. This is because NNPC controls the distribution of products and sets prices for off-takers at ex-depot rates. Collaboratively, they calculate profit margins where there should be no reason for it to be excessively high.
The queues endure.
Saturday PUNCH observed that fuel queues have continued to exist throughout the country.
The fuel scarcity in the Federal Capital Territory, Abuja has persisted for more than two months resulting in an unchanging situation.
On Friday in the Kuje Area Council of the FCT, Baka retailed fuel at N950 per litre while AA Rano sold it for N720 per litre.
Nura Dauda, a motorcyclist, pointed out that he purchased petrol at a BOVAS filling station in the local council for N670 per litre. However, it was sold to him by Nigerian National Petroleum Corporation for N617 per litre.
Rain Oil fuel station in Lugbe, Abuja Municipal Area Council was inundated with lengthy queues consisting of numerous commuters eagerly waiting to obtain fuel.
Large crowds were seen at NNPC and Shafa gas stations in the Bwari Area Council.
Obaje Samson, a resident of the FCT, expressed disappointment over the insufficient distribution of fuel in the area. Despite numerous assurances from authorities to provide enough fuel supply, he was left wondering why there is still scarcity.
