Customs auction off seized petrol to Nigerians at subsidised rates 

The Nigeria Customs Service (NCS) has disclosed it is selling seized petrol from smugglers in the Northern parts of the country at a subsidised price.

In a statement signed by the Acting Public Relations Officer, Katsina Command, Assistant Superintendent of Customs, Isah Bello, the service noted that under its operation whirlwind, it has seized up to 12,000 litres of PMS across the Katsina, Kano, and Jigawa axis which were being smuggled to neighbouring countries.

Comptroller Hussein Ejibunu, Coordinator of Operation Whirlwind, disclosed that the Comptroller-General of Customs, Adewale Adeniyi, approved the auction of seized petrol to citizens at subsidized rates as a strategic measure to alleviate the nation’s economic challenges.

Ejibunu further urged Nigerians, particularly those living in border areas, to support the operation by staying vigilant and collaborating with customs officers in the fight against fuel smuggling and other illicit activities.

The statement reads, “The Nigeria Customs Service (NCS), under its Operation Whirlwind, has intensified its efforts to curb fuel smuggling in the northern border regions, resulting in the seizure of 12,025 litres of Premium Motor Spirit (PMS) across the Katsina, Kano, and Jigawa axis.” 

“The Coordinator of Operation Whirlwind, Comptroller Hussein Ejibunu, represented, revealed that in a strategic move to ease the economic challenges currently facing the country, the Comptroller-General of Customs, Adewale Adeniyi, authorised the auction of the seized petrol to citizens at subsidised rates.” 

“This aligns with Section 119 of the Nigeria Customs Act 2023, which empowers the NCS to sell seized fuel to the public. The initiative aims to ensure that the benefits of fuel price deregulation reach all Nigerians, particularly in border communities where smuggling activities are prevalent.”  

The recent seizure reflects efforts by the customs service to bring an end to the spate of PMS smuggling across Nigeria’s borders. Last week, the service in the Northeast order the auctioning of seized petrol at N630 per litre rate.

Nigeria’s battle with petrol smuggling 

Before the deregulation of the downstream sector of the oil industry, petroleum products were frequently smuggled to neighboring countries such as Niger, Cameroon, and the Benin Republic. This placed a significant financial burden on the Nigerian government due to the subsidy system, while citizens of these neighboring countries indirectly benefited from the subsidized fuel.

• In June, approximately 1,800 petrol stations in the Northeast were shut down following a dispute between petroleum marketers and the Nigeria Customs Service (NCS). The disagreement arose from a Customs crackdown targeting marketers suspected of engaging in fuel smuggling.
• According to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigeria’s daily average fuel consumption dropped from 66.9 million litres before the removal of the fuel subsidy to 48.4 million litres, marking a decline of 18.5 million litres.