Cross-border fuel smuggling dropped after subsidy removal says NNPCL boss

The removal of fuel subsidies in Nigeria has significantly curtailed the cross-border smuggling of Premium Motor Spirit (PMS), according to the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari.

Speaking during an interview with journalists on Sunday, Kyari explained that the subsidy regime had created a wide price disparity between Nigeria and its neighboring countries, which made smuggling a highly lucrative activity.

Kyari further highlighted that prior to the subsidy removal, the substantial difference in fuel prices incentivized smugglers to engage in illegal cross-border transportation of PMS.

Kyari also noted that the cost disparity between legitimate and illegal transportation of PMS is now significant, with legal transportation being much less profitable.