Mele Kyari, CEO of Nigerian National Petroleum Company Limited, revealed that petrol smugglers exploited subsidy loopholes, making ₦17 million per 6,000-liter truck in neighboring countries. Briefing journalists in Abuja, Kyari attributed cross-border smuggling to fuel subsidy.
“In the last 47 years, PMS has always been subsidized, creating arbitrage,” Kyari said. “When President Bola Ahmed Tinubu announced subsidy removal in June, it eliminated the price difference that fueled smuggling.”
A 6,000-liter truck could yield ₦17 million per trip, making it lucrative for smugglers. However, legitimate transportation to Maiduguri would earn less than ₦500,000.
Recent fuel price hikes have exacerbated Nigeria’s economic crisis. Prices surged 15-20% on October 9, following a 40% increase in September. The Nigeria Labour Congress demanded an immediate reversal, citing rising poverty and inflation.
President Tinubu’s reforms aim to revive the economy, but Nigerians face soaring inflation and food costs, plus a weakened naira. Petrol prices have risen from less than ₦200 per liter to over ₦1,000.
Kyari emphasized that subsidy removal has eliminated smuggling incentives. “Why take risks for ₦17 million when legitimate sales yield ₦3-4 million?” he asked.
Nigerians struggle to cope with economic hardship. Protests against price hikes have been met with crackdowns. President Tinubu urges patience, promising long-term economic benefits.
