KPMG Nigeria has said that fuel pump prices have increased to 800 CFA ever since Nigeria put an end to its fuel subsidy regime.

The company stated this in its June 2023 report on “Removing Fuel Subsidies in Nigeria”. According to KPMG, this could be an indication that Nigerian fuel was being smuggled to neighboring countries during the era of fuel subsidies.

“A key challenge throughout the implementation of the PMS subsidy regime was tracking precisely how much subsidised fuel was consumed by Nigerian consumers and how much leaked into the markets of neighboring countries that did not have such subsidies.

“Indeed, in response to the PMS subsidy removal by President Bola Tinubu, GCFR, pump prices in the Republic of Benin almost doubled from 450 CFA to 800 CFA, underscoring the widespread belief that significant quantities of subsidised PMS were smuggled out of Nigeria into neighboring countries.”

Recall that Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited recently said that Nigerian fuel was smuggled and sold in various neighboring countries, including Sudan. He cited an example saying the margin for four trucks of 60,000 liters of fuel taken from Lagos to Maiduguri legitimately was about N300,000. Meanwhile, the margin for sale of the same number and capacity of fuel across the Nigerian border is about N12 million to N17 million.

According to the KPMG report, given the relatively higher prices that persist in Benin Republic compared to Nigeria, there may still be arbitrage opportunities for smugglers and rent seekers to continue to smuggle fuel out of Nigeria across the border to its neighbors.

The KPMG report suggested that the use of nanotechnology to track the movement of Nigerian fuel across borders may provide Government policymakers with enhanced information for evidence-based decision-making.

The KPMG report highlighted the fact that significant progress has been made in vehicle tracking systems which can provide real-time data on vehicle location, fuel usage, and fuel source. Relevant interventions include linkages to the Vehicle Identification Numbers and Global Positioning System tracking can be used to prevent the misuse of fuel products for personal use.

The report stated that the use of nano-infused fuel additives and other materials may be used to track and trace fuel from port to fuel station forecourts, and indeed, to smuggle supplies across borders to neighboring countries. The report also suggested that Nano-sensors can also be used to track fuel levels in each vehicle’s fuel tank to prevent disruption of traffic flows and limit delays for passenger.

GeneralPula:
True..

That’s 900 naira..

sonature1:
Nigeria is a sick country!

How can we have border patrol agencies and be subsidizing PMS for all West African countries?

This is enough to retire all customs officers that work along Nigerian borders!

JasonScoolari:
Hope you're buying it N165 my dear APC brother.

Because I know so many Obidients buying it at N650 per litre.

RenaissanceGuy:
There's no country with a perfect border control architecture. Hundreds of thousands of Mexicans cross into the US every year despite how very manned it's.

Healthquest:
BAT for a reason

sonature1:


Oga, stop comparing Nigeria with America.

The size of the US is as big as an entire continent.

sonature1:


Oga, stop comparing Nigeria with America.

The size of the US is as big as an entire continent.

GeneralPula:

I’m buying at the normal selling price. If it was removed by Obi or Atiku, i would still buy!

You people are getting it wrong. It's not about *how much you're buying fuel now*

When fuel was at the range of #20/litre, the country wasn't working..

When fuel was at the range of 65#, the country wasn't working..

When fuel was at the range of 95,120,190,,, the country wasn't still working..

Now, one of those things that can help the country move forward is removal of subsidy! Now, it has happened! What next? We shall see! I believe if government use the subsidy money for the betterment of Nigerians, we'll all feel and enjoy the result!

JasonScoolari:
Hope you're buying it N165 my dear APC brother.

Because I know so many Obidients buying it at N650 per litre.

Cloudflare:


If the size of the US is as big as an entire continent, what then will you call the size of India and China whose size is by far bigger than the US?

jmoore:
You closed borders but hundreds of millions of liters are taken to neighbouring countries.

If we can't safeguard our borders from economic sabotage, then how can we protect ourselves from foreign terrorists?

So the solution is to punish Nigerians for the corruption of custom officials.

JasonScoolari:
Hope you're buying it N165 my dear APC brother.

Because I know so many Obidients buying it at N650 per litre.

RenaissanceGuy:
It's not a must to comment if you don't have something very germane and relevant to a thread. Now that the subsidies have been removed, let the smugglers keep on with their trade and let's see if they'll make any more humongous profits.

Parachoko:
The likes of Bossgerald wants Nigeria to keep on subsidizing petrol for Benin, Niger and Cameroon

JasonScoolari:
You did not bold your previous comment, why the rush to bold this one?

A simple question and you're already calling Obi and Atiku and writing 3rd lamentation.

Let me ask again; You dey buy fuel at N165 per litre?

Because Obidients are only permitted to buy at N650 oh.

TemplarLandry:
Countries like Benin Republic, Ghana, Chad and Niger are leeches, sucking hard on our struggling economy.
Thank God for sending us Asiwaju Bola Ahmed Tinubu, GCFR.

jmoore:

It is not a must to reply me.
Now that subsidy has been removed, let's see if you will pay lower transport fare. Some state governors have already declared two days sit at home weekly for their workers. Is it the smugglers that are responsible for that?

GeneralPula:

A simple question & a simple analogy..

I answered you - I’m buying at the normal current selling price.

Roger3D:
It was Buhari who introduced subsidy removal as the 2023 budget signed by Buhari makes provision for it until the end of June. BAT only had the political will will to stick by it.