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Despite Subsidy Removal, Petrol Smuggling Thrives Unabated to Benin Republic

In the scorching afternoon heat, Taiwo Josu, a young woman in her 20s, trudged along the illegal bush paths connecting Nigeria to Benin Republic. Strapped with school bags on her back and chest, and a sack balanced on her head, she seemed to carry the weight of a space expedition. 

Accompanying her was Gandonou, a 35-year-old man whose family’s livelihood hinged on the illicit trade of smuggling petrol.

Gandonou’s routine involved nightly escapades on his moped, crossing illegally into Nigeria to fill jerry cans with fuel. The contraband was then sold by his wife, Ajuwa, during the day along the Cotonou-Port-Novo expressway. 

This clandestine operation shed light on a stark reality: despite President Bola Ahmed Tinubu’s bold declaration on the removal of fuel subsidies, the smuggling of petrol to Benin Republic was far from extinguished.

The move to eliminate fuel subsidies, as announced by President Tinubu during his inaugural speech in May 2023, aimed to address negative implications on the country’s revenue and infrastructure spending. 

However, the persistence of petrol smuggling across Nigerian borders contradicted the hopes that subsidy removal would curb this illicit trade.

Petrol smuggling emerged as a thriving enterprise along the expansive and intricate borders shared by Nigeria and Benin. 

A myriad of smuggling routes, both known and newly devised, crisscrossed the border regions, from Seme in Lagos to Kishi in Oyo State and Ipokia in Ogun State, illustrating the extensive landscape that facilitated this illegal trade.

Gandonou, though acknowledging the increasing difficulty in his trade due to the scarcity of petrol on the Nigerian side, continued to bring home at least 100 liters per night. 

While Josu and Gandonou once smuggled over 500 liters daily, the reduced availability of petrol had compelled them to consider 150 liters a successful endeavor.

Before subsidy removal, Nigeria’s daily petrol consumption had reached astronomical levels, leading to substantial government spending. 

The Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, disclosed that over N4 trillion was spent on petrol subsidies in 2022. 

Despite the removal of subsidies in 2023, smuggling persisted, challenging the belief that this trade was the sole reason for the country’s high petrol consumption.

Investigations by The Guardian uncovered the continued operation of smugglers in Badagry, Seme, and Benin Republic, where an explosion in September 2023 claimed lives and revealed the dangerous consequences of illegal petrol trading. 

Surprisingly, despite the removal of subsidies, the demand for smuggled petrol remained high in Benin Republic, where the official price exceeded that in Nigeria.

During The Guardian’s visit to Benin Republic, it was discovered that smuggled petrol from Nigeria, sold in the black market, was cheaper than the official price. While a liter of petrol officially cost 800CFA, the black market price ranged from 550CFA to 650CFA.

 In comparison, in Badagry, petrol was sold for N640 to N650 per liter, while in Benin Republic, the price fluctuated between N1000 to N1400 when converted.

Some Nigerians commended Tinubu for the subsidy removal, attributing the drop in daily petrol consumption from 66 million liters to 48 million liters to this policy change. 

However, the decrease in consumption wasn’t solely due to a halt in smuggling. The Guardian’s findings revealed a persistent flow of petrol from Badagry to Seme, with women playing a significant role in transporting the product.

At Badagry, petrol stations became hubs for women armed with various containers, repackaging and transporting fuel to Seme. Smugglers utilized different tactics, from packaging in disused water bottles to expanding vehicle fuel tank capacities. 

Despite numerous security checkpoints, smugglers navigated these hurdles, sometimes with the complicity of security personnel.

Residents, particularly in Seme, expressed dissatisfaction, citing increased fuel prices due to smuggling activities. 

A liter of fuel on the Nigerian side of the Seme border ranged from N800 to N900. Many filling stations in the vicinity remained non-functional since the 2019 government decision to halt fuel supply within 20 kilometers of the border.

Residents bemoaned the inconvenience of traveling to Badagry for fuel, often paying higher prices due to smuggling activities. 

The Guardian’s investigation revealed the pervasive influence of smugglers in the region, with petrol stations prioritizing their needs over regular consumers. 

The impact on border communities included inflated prices, extended transport fares, and a challenging life exacerbated by the illegal activities.

Despite the government’s efforts to monitor borders through technology, smuggling persisted through numerous illegal routes. 

The porous 17,000-kilometer border, comprising over 2,000 communities, facilitated these activities. Residents, frustrated by the challenges posed by smuggling, called for government intervention to ensure access to petrol at official prices.

In conclusion, the removal of fuel subsidies did not curtail petrol smuggling to Benin Republic. 

The persistence of this illicit trade underscored the complexity of the issue, involving economic incentives, security lapses, and the impact on border communities. The challenge remains for the government to address these multifaceted issues to truly eliminate the scourge of petrol smuggling across borders.

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