A significant number of filling stations operated by independent oil marketers at border areas have remained closed since 2019 following a directive from the Federal Government to curb petrol smuggling to neighboring countries. The Nigeria Customs Service has affirmed that these stations will remain shut to prevent fuel smuggling, particularly amidst a petrol scarcity in Niger Republic. The closure has led to revenue losses for oil marketers.
The Customs Service is actively enforcing the shutdown of these stations to combat fuel smuggling through Operation Whirlwind. The intense petrol scarcity in Niger Republic has driven up fuel prices, making smuggling from Nigeria more appealing. The Customs Service is determined to prevent illegal fuel transportation out of the country and is cracking down on smugglers.
Despite the positive impact on reducing fuel smuggling, the continued closure of over 400 petrol stations has adversely affected businesses and led to job losses. The ban on fuel supply within 20km of the border was initiated to prevent economic sabotage, but it has negatively impacted the livelihoods of station owners and employees. The ban does not align with the Petroleum Industry Act, and efforts are underway to review and potentially lift the restriction.
The closure of these filling stations has disrupted the flow of fuel to Niger, which previously depended on Nigeria for a significant portion of its fuel consumption. Niger’s refinery is struggling to meet the increased demand following the halt in fuel supply from Nigeria. The fuel crisis in Niger has reached critical levels, with petrol prices soaring and causing economic challenges.
Despite the challenges, efforts are being made to address the fuel crisis and find solutions to the issues caused by the closure of the filling stations in border communities. The situation underscores the complex interdependence of neighboring countries in the region and the need for coordinated efforts to ensure stable fuel supply and economic sustainability.