shippingposition
  • Home
  • News
  • Editorial
    • Vox Pop
  • Maritime safety
  • Oil and Gas
  • Personality
  • Health
No Result
View All Result
shippingposition

Home » NNPC Rejects Customs Proposal On Petrol Smuggling Stoppage

NNPC Rejects Customs Proposal On Petrol Smuggling Stoppage

Says it will monitor distribution electronically

by Joshua
August 26, 2021
in Featured

The Nigerian National Petroleum Corporation, (NNPC) on Wednesday, confirmed the claim by the Nigeria Customs Service that Nigeria’s subsidised petrol was being smuggled out of Nigeria in large quantities.

NNPC BUILDING ABUJA

It, however, rejected the proposal put forth by the Customs on how to stop the illegal business.

The Group Managing Director of the NNPC, Melee Kyari, while noting that smuggling of petroleum products is almost impossible to stop, disclosed that President Muhammadu Buhari, has ordered involvement of security and anti-graft agencies in the war against the economic sabotage.

Kyari said these in Abuja on Wednesday at the ongoing public hearing organised by the House of Representatives Committee on Finance on the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper.

The Controller-General of the NCS, Col. Hameed Ali (retd.), had while appearing before the same committee on August 16, 2021, said petrol was being smuggled out of Nigeria in large quantities after it had been subsidised by the Federal Government.

Chairman of the committee, James Faleke, on Wednesday asked the GMD to confirm if the NNPC monitored the volume of product imported, distributed and consumed on a daily basis in the country.

Kyari said, “Yes. There is a single point of import, which is the NNPC. And the evacuation data is coming from the records that we receive from the PPPRA.

“I can confirm to you that anytime we supply less than 60 million litres per day – average – consecutively for two weeks, we will see shortages coming on the streets. Sometimes, it is not visible to the public but we see the constraint and we take necessary actions to close those gaps.

“Much as I believe personally that our national consumption may not be 60 million litres per day, I am convinced that anytime you supply less than 60 million litres per day, you will have a challenge here. A number of things are happening.

“Without any contradiction, the oil that we import into this country gets everywhere. It is found in many West African countries. It goes as far as Sudan; we have records to show this.

“It is found in many countries that are proximate to us but as far as the Central African Republic. This is very true. In addition to this, once you have a situation of price arbitrage, everything can happen. And I can confirm that it is very difficult to contain it.”

He added, “Mr President has personally directed me to take every step possible to make sure that we contain the issues around cross-border smuggling; issues around early pilferages in the depots and any involvement of anyone to get this resolved.

“We have taken several steps. We have involved the EFCC, the Department of State Services; we are collaborating and engaging with the Customs Service; we are engaging and collaborating with the Department of Petroleum Resources; and everybody that has a stake in this.

“With the best of action and the best of intention, you will still have a challenge containing cross-border smuggling. As you are aware, we have up to 3000 kilometres of land borders.

“In many of the locations, they practically don’t exist; you don’t need to ply the road to cross into another country. That is the reality. I need your help to contain this but the reality still remains that we are supplying everyone else.”

Faleke also asked the NNPC GMD about the advice given by the Customs boss that the NNPC and private Nigerian investors should establish fuel depots and stations in the neighbouring countries to check smuggling.

Responding, Kyari stated that the NNPC had been skeptical to invest in the potentially ‘bad business’, adding that fuel smuggling would be addressed by the full implementation of the Petroleum Industry Act, which would end the present subsidy regime.

He said, “I have also seen the recommendation by the CG of Customs, that we should go and establish fuel stations across our borders to curtail smuggling. The people who are smuggling are not looking for officially priced petroleum products, unfortunately.

“So, when you go ahead, across the countries, and establish fuel stations…except you are going to see it at N162 (per litre), then everybody will come to you. As long as you are going to sell at the market rate…it is the same reason that is bringing them here to smuggle.

“At the risk of being repetitive, the people who take products across the border will not sell at the official price because when you buy here at N162 and the official price, say in Niger, is N400 per litre, that is what you will buy at the fuel station. So, when you establish a fuel station, you must sell at N400.

Read Also:  Invest In Air Cargo For Revenue Generation, Insurer Tells FG

“We have thought of this; as a matter of fact, we are already engaging the national oil company of Niger in particular to establish NNPC Retail fuel stations in the country, but we are also conscious of the very fact that it can be a bad business because you are going to compete with the people who are coming to collect (and smuggle).”

He added that at the moment Nigeria exited the regulated environment, smuggling would be curtailed.

The Group Managing Director of the NNPC however said that the corporation would henceforth employ electronic to monitor fuel distribution across the country.

This, the GMD said was in a bid to check the activities of smugglers

He said that there was an ongoing initiative to put electronic monitor on tank and fuel stations that would monitor the distribution of fuel in the country.

He stated that with the electronic monitoring, every truck carrying fuel would be visible as they discharged their load and would see all the fuel stations as they discharged.

shippingposition

Kindly like us on Facebook


Tags: Nigeria Customs ServiceNNPCPetrol Smuggling Stoppage

Related Posts

Nasiru Ibrahim

OPINION: Dual Clearing: The Secret Racket Killing the Single Window

August 3, 2026
NIMASA, Mission to Seafarers Strengthen Partnership on Seafarers

NIMASA, Mission to Seafarers Strengthen Partnership on Seafarers

August 3, 2026
Navy Recover 61,000ltrs Of Petroleum Products From Reactivated Illegal Networks In Rivers

Navy Recover 61,000ltrs Of Petroleum Products From Reactivated Illegal Networks In Rivers

August 3, 2026

Oyebamiji Targets Dagbolu Dry Port, Free Trade Zone Revival to Drive Osun Economy

August 2, 2026

Discussion about this post

Latest News

Nasiru Ibrahim

OPINION: Dual Clearing: The Secret Racket Killing the Single Window

August 3, 2026

NIMASA, Mission to Seafarers Strengthen Partnership on Seafarers

Navy Recover 61,000ltrs Of Petroleum Products From Reactivated Illegal Networks In Rivers

Much Ado About Foreign Dominance Of Freight Forwarding in Nigeria

MONDAY INTERVIEW:    “Indigenous bonded terminals are dying, while government celebrates revenue growth”—Aare Haruna Omolajomo

All You Need To Know About Hepatitis

Intake Of Sugar, Sweet Things Cause No Erectile Dysfunction – Gynecologist

Minimum Safe Manning Must Not Become Shipping’s Commercial Target

SHIPTALK: Main Reasons Seafarers Quit Sea Jobs   (1)

Navy Arrests Vessel With 650 Metric Tonnes Of Stolen Crude

WEEKLY GLOBAL MARINE INCIDENTS

Oil, Gas Sector, Autonomous Sources Lift Nigeria’s FX Inflows to $109.9bn — CBN

kindly like our Facebook page

Health

ABC Of Malaria
Health

ABC Of Malaria

July 27, 2026

Malaria is a life-threatening, curable disease caused by the Plasmodium parasite, which is transmitted to humans through the bites of...

Billions Spent, Millions Still At Risk: Why Nigeria Remains World’s Malaria Capital

Billions Spent, Millions Still At Risk: Why Nigeria Remains World’s Malaria Capital

July 27, 2026
Mental Illness Is Medical, Not Spiritual Attack, Psychiatrist Emphasises

Mental Illness Is Medical, Not Spiritual Attack, Psychiatrist Emphasises

July 20, 2026
Fruits For Raining Season

Fruits For Raining Season

July 20, 2026
Diseases To Watch Out For During Rain and Flooding

Diseases To Watch Out For During Rain and Flooding

July 20, 2026
WHO Launches Campaign To Prevent Stem Rising Suicide In Africa

WHO Warns Global Cancer Cases May Hit 35m By 2050

July 13, 2026
Six Common Ailments You Can Avoid During Rainy Season

Six Common Ailments You Can Avoid During Rainy Season

July 13, 2026
Herbal Remedies: Nutritionist Raises Safety Concerns

Herbal Remedies: Nutritionist Raises Safety Concerns

July 6, 2026
JUNE SPECIAL FOCUS ON MEN’S HEALTH

JUNE SPECIAL FOCUS ON MEN’S HEALTH

June 29, 2026
Prostate Health Awareness Message Men Must Read

Prostate Health Awareness Message Men Must Read

June 15, 2026

© 2021 Shippingposition

Navigate Site

  • Home
  • About Us
  • Contact us
  • Privacy Policy
  • Editorial Policy
  • Sitemap
  • Terms

Follow Us

No Result
View All Result
  • News
  • Coast To Coast
  • Oil and Gas
  • Maritime Education
  • The Terminals
  • Maritime safety

© 2021 Shippingposition