By Ajibola Adedoye
In response to the alarming increase in fuel smuggling especially in border states that share boundaries with our neighboring countries, the Nigeria Customs Service (NCS) in collaboration with the Office of National Security Adviser (ONSA) has initiated Operation Whirlwind in order to curb the nefarious activities that consistently put the country’s economic fate into jeopardy.
Bashir Adewale Adeniyi, the Comptroller-General of NCS who stated this on Monday, June 10, 2024 in Yola, the capital city of Adamawa State disclosed that one of the major aim of this operation is to “Ensure that Nigerians enjoy the full benefits of fuel price deregulation in line with the vision of President Bola Ahmed
Tinubu as well as to defend the National currency and reduce pressures that may
be attributed to the activities of smugglers”.
On what actually led to the problem of fuel smuggling across the border, the CGC explained that “About a year ago, the Federal Government made the bold strategic decision to remove the fuel subsidy. This crucial step was
aimed at freeing up substantial funds that could be redirected to other productive sectors of the economy, reducing pressure on our foreign
exchange reserves, and diversifying economic growth.
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“The immediate impact was an upward adjustment in fuel prices to reflect current realities. Despite the inflationary pressures and financial strain on
households, particularly those with lower incomes, comparative studies
still show that fuel prices in Nigeria remain the cheapest compared to
other countries in the West and Central African region. While Premium
Motor Spirit (PMS) is sold at an average of N701.99 in Nigeria, it is sold at an average of N1,672.05 in the Republic of Benin and
N2,061.55 in Cameroon. In other countries around the region, the price of PMS ranges from N1,427.68 in Liberia to N2,128.20 in Mali, averaging N1,787.57, according to the fuel price data obtained from open source.
“This comparative price advantage, while beneficial to our citizens, unfortunately creates a lucrative incentive for smuggling PMS out of Nigeria, where prices are two to three times higher. This claim is substantiated by the report on the average daily evacuation of PMS to various states in Nigeria, obtained from the Nigeria National Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
“The report shows significant changes in evacuation patterns that are not justified by corresponding economic and
demographic changes, particularly in border statesthat share contiguous borders with our neighbours.
“Between April and May 2024, Borno and Kebbi States recorded 76% and 59% increases in evacuations, ranking among the top three states. On a year-on-year
basis (May 2023 and May 2024), Sokoto and Taraba States recorded the most substantial increases in evacuations, with 247% and 234% increases, respectively. Border states like Katsina and Kebbi also recorded more than 50% increases in evacuation.
“These discrepancies, along with the price disparity between domestic PMS (N701.99) and neighbouring countries (N1,787.57), raise concerns about the actual delivery of PMS and the potential for smuggling.
“Moreover, credible intelligence on activities around border areas corroborates these suspicions” he stressed.
Adeniyi however assured that with the introduction of Operation Whirlwind under the auspices of ONSA, NCS guided by credible intelligence and empowered by the new Customs Act 2023, would be able to identify, dismantle and disrupt cartels of smugglers operating within the ecosystem and also raise awareness of the local communities and solicit their
support to achieve these objectives.
According to him, the Operations is to be
coordinated by the Comptroller of Customs, covering all NCS Zones (A-D),
involving selected officers trained and equipped to handle the task with
strict adherence to professionalism. Supported by the ONSA and the NMDPRA utilizing internal and external
sources.
Speaking further, Adeniyi disclosed that Operation Whirlwind which was launched approximately two weeks ago has recorded significant strides in preventing illegal exportation of the commodity out of the country.
He disclosed that, “In the past 2 weeks we have received credible intelligence on the relative stability of the price of PMS around border states, this is easily attributed to disruptions in the operations of smugglers. Within 7 days of intensive operations, a total of 150,950 litres of PMS, valued at N105,965,391 have been intercepted at various locations nationwide.
“The seizures include: A total of 45,000 litres of PMS in a tanker was seized at Mova, Adamawa on Friday 31 May 2024. A total of 45,000 litres of PMS was seized in a tanker at Mubi, Adamawa on Saturday 1 June 2024. A total of 2,375 litres of PMS (in 95pcs of 25-litre jerrycan) were seized at Mubi, Adamawa State On Monday, June 3, 2024. On Wednesday 5 June 2024, a total of 4,450 litres of PMS in 178 25-liter jerrycans were seized in 3 different locations,
including Song-Wuroboki, Mubi-Sahuda Road and Gidan Madara Sahuda Road all in Adamawa state. On Thursday 6 June 2024, a total of 20,030 litres of PMS
in 25 and 30 litre Jerrycans were sized in various locations across the country including Maiha, Adamawa State, Illela, Sokoto and Agbaragba Creek in Mfum border of Cross River State. On Friday 7 June 2024, a total of 32,900 litres of PMS
were seized at border locations in the North-East and South-West axis of the country, a total of number of 17,500 litres was recoded in Mubi Adamawa State, while 15,400 litres was recorded around Imeko/Obada Road in 616 25 litre Jerrycans. On Saturday, June 8, 2024, a total of 8,525 litres of PMS were also seized in 2 separate locations in Owode (Owode-Láró road and Owode-Atan road) in Ogun state.
“While the operation continues, our Federal Operating Units and Marine Commands have intercepted a total of 129,185 litres of fuel valued at N90,558,685. 54.48% of these seizures occurred in the North-West region, including states such as Katsina, Kebbi, and Sokoto, while 23.87% of the seizures were recorded in the North Eastern part of the country, particularly in states like Taraba and Adamawa.
“It is worth noting that these states have also seen a significant increase in fuel evacuation as reported by the NMDPRA.
“It is now evident that the recent rise in the distribution of PMS to border states is driven by the activities of smugglers. A combine diversion of 280,135 litres of PMS N196,524,075.50 raises serious
economic concerns with broader implications on National Security. The quantum of this diversion is equivalent to the more that 84% of the daily evacuation of PMS to states like Ekiti and Jigawa. It also represents around 32.57% of the daily evacuation to the border states of Borno and Katsina according to the data on average daily evacuation
obtained from NMDPRA.
“These activities, if left unchecked, could
further deteriorate the country’s economic situation and exacerbate current foreign exchange challenges. The influx of unaccounted foreign currency could be channelled into funding illegitimate activities, including the support of non-state actors engaged in criminal activities against the Nigerian state. These issues have serious implications for national security, making it imperative to check, curtail, and dismantle these illicit operations. Achieving this requires the cooperation and collaboration of patriotic government agencies, exemplified by the ongoing Operation Whirlwind. Under this collaboration, efforts are being made to resolve existing gaps in sharing of critical data among agencies. This will enable the NCS to track the movement and delivery of these products to their
intended locations”.
The CGC further warned perpetrators of these illicit acts to desist immediately or face the full wrath of the law.
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