The ongoing fuel crisis in Niger Republic has brought to the forefront the complex relationship between Nigeria’s fuel policies and their impact on neighboring countries. Since 2019, over 400 filling stations belonging to independent oil marketers in Nigerian border communities have been shut down under a Federal Government directive aimed at curbing petrol smuggling.
This closure has resulted in significant revenue losses for the marketers, while the Nigeria Customs Service (NCS) maintains its stance on enforcing the shutdowns.
The NCS, through its spokesperson Abdullahi Maiwada, affirmed that the border filling stations would remain closed, emphasizing the agency’s commitment to combating fuel smuggling through Operation Whirlwind. This stance is particularly relevant given the recent severe petrol scarcity in Niger Republic, which has driven fuel prices to exorbitant levels. The NCS has been actively confiscating smuggled petrol across Nigeria’s borders and prosecuting those involved in smuggling operations.
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Independent oil marketers, however, have expressed their discontent with the continued closure of their filling stations. They argue that their businesses have been crippled since the 2019 ban, which prohibited fuel supply within 20km of the border. The marketers acknowledge the government’s efforts to curb smuggling but believe that the policy should be reviewed, especially now that fuel subsidies have been removed in Nigeria.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, stated that the closure of these stations is not in alignment with the Petroleum Industry Act (PIA). He revealed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is working with the Office of the National Security Adviser (NSA) to reassess the ban. Ukadike argued that with the removal of subsidies and the effectiveness of Operation Whirlwind, the ban should be lifted to allow legitimate businesses to operate.
The fuel crisis in Niger Republic has highlighted the country’s heavy reliance on Nigeria for its fuel supply. Before the removal of subsidies, a significant portion of Niger’s petrol consumption was met through smuggling from Nigeria. The sudden halt of this supply, coupled with the limited capacity of Niger’s sole refinery, has led to severe shortages and price hikes. The Commercial Director of Niger’s state-owned oil company, Maazou Oumani Aboubacar, confirmed that half of the country’s fuel consumption used to come from Nigeria
The impact of Nigeria’s fuel subsidy removal and border control measures has been profound for Niger. The country’s refinery can only produce a fraction of its daily fuel needs, leaving a significant gap that was previously filled by Nigerian smugglers. With the sharp increase in fuel prices in Nigeria, smuggling has become less attractive, leading to acute shortages in Niger.
Despite strained relations, Niger Republic has sought assistance from Nigeria to alleviate its fuel crisis. The Nigerian government responded by granting approval for 300 trucks of fuel to be transported to Niger. This move underscores the interconnectedness of the two countries’ economies and the need for collaborative solutions to address regional fuel supply issues.
