In a decisive move to alleviate transportation challenges during the festive season, the Nigeria Customs Service (NCS) has announced the auctioning of 15,325 litres of Premium Motor Spirit (PMS) at ₦400 per litre. The initiative follows the successful seizure of the fuel from smugglers operating in the Lagos-Ogun axis.
Speaking at a press briefing at the Customs Training College in Ikeja on Saturday, December 21, 2024, Assistant Comptroller General (ACG) Hussein Ejibunu, the National Coordinator of Operation Whirlwind, confirmed the development.
“This operation has been ongoing since May 27, 2024, and we have achieved significant successes in tackling economic sabotage. The Comptroller General of Customs (CGC) has urged our operatives to sustain this tempo until we eradicate the activities of these saboteurs,” Ejibunu declared.
Fighting Smuggling with Strategic Auctions
The petrol, valued at over ₦27 million in Duty Paid Value (DPV), was confiscated during a series of operations aimed at disrupting smuggling networks. A total of 613 jerrycans were intercepted, highlighting the scale of illicit activities that continue to undermine Nigeria’s economy and fuel supply chain.
With all legal processes, including a court condemnation order, completed, the Customs Service is now set to auction the petrol at a highly subsidized rate. “The CGC has directed the auction of the seized product to members of the public at the rate of ₦10,000 per 25 litres,” Ejibunu announced. This equates to ₦400 per litre, a price significantly below current market rates.
Ejibunu explained that the auction aims to not only punish economic saboteurs but also provide relief to Nigerians grappling with high transportation costs during the end-of-year festivities. “This will ease the transportation hardship during this festive period,” he noted.
A Persistent Battle Against Economic Saboteurs
Operation Whirlwind, the Customs’ flagship anti-smuggling initiative, has become a cornerstone of the agency’s efforts to clamp down on fuel diversion. The operation, which commenced in May 2024, targets smugglers exploiting porous borders and unchecked routes to siphon subsidized fuel intended for local consumption.
“Our operatives remain vigilant, and this seizure is a testament to our commitment to safeguarding Nigeria’s resources,” Ejibunu stated. He emphasized that fuel smuggling not only robs the government of revenue but also exacerbates domestic fuel shortages, leading to spikes in pump prices.
Festive Cheer for Transport Operators
The timing of the auction aligns with peak holiday travel, a period typically characterized by increased demand for transportation and fuel. For many Nigerians, the subsidized price represents a rare opportunity to access affordable petrol amidst a volatile market.
A commercial bus operator, who identified himself as Chukwudi, praised the initiative. “If this petrol is sold at ₦400 per litre, it will help reduce the cost of transportation for passengers and ease our operations. This is a welcome development,” he remarked.
Similarly, a Lagos-based trader, Aisha Suleiman, expressed optimism. “I hope this auction benefits ordinary Nigerians and is not hijacked by big businesses,” she said.
Customs’ Broader Mandate
The NCS has intensified its enforcement of anti-smuggling laws in recent years, leveraging specialized units like Operation Whirlwind to target critical sectors of the economy. The seizure of fuel products has been particularly prioritized due to the impact of smuggling on national fuel availability and pricing.
In 2023, the NCS reported seizing over 50,000 litres of PMS across various operations, a figure that underscores the persistence of smuggling despite increased surveillance. According to analysts, such seizures are indicative of broader systemic issues, including inadequate border security and corruption.
Transparency and Public Access
One key feature of the upcoming auction is its transparency. Customs officials have assured Nigerians that the process will be open to the general public, with strict measures in place to prevent favoritism or hoarding.
“The legal department has finalized all required procedures to ensure this auction is conducted lawfully and fairly,” Ejibunu affirmed. He urged Nigerians to take advantage of the opportunity, adding that details about the auction process would be made publicly available.
Smuggling and the National Economy
The economic ramifications of fuel smuggling are far-reaching. By diverting subsidized fuel meant for domestic use, smugglers create artificial scarcity, driving up prices and straining an already fragile economy.
According to the Nigerian National Petroleum Company Limited (NNPCL), smuggling accounts for millions of litres of fuel lost daily, translating to billions of naira in revenue shortfall annually. This practice also undermines government efforts to stabilize the energy sector and provide relief to citizens.
Customs’ proactive measures, including fuel seizures and subsidized auctions, are therefore critical to addressing these challenges. By making seized fuel available to the public at affordable rates, the NCS not only disrupts smuggling networks but also contributes to economic stability.
