Oil marketers advise government on how to curb smuggling of petroleum products

Some oil marketers, on Thursday, advised the government to ensure stricter monitoring of supply and distribution of petroleum products across the country.

Their call follows the announcement of the reopening of 4 land borders across the country by the Federal Government after 16 months of shutdown.

READ: FG to make forex available to oil marketers for import to drive down petrol price

According to a report from the News Agency of Nigeria (NAN), the marketers explained that monitoring of petroleum products from the point of loading to distribution would help curb smuggling activities.

What they are saying

The Chief Executive Officer for Dateline Energy Services, Mr Wilson Opuwei, remarked that the reopening of the borders was a welcome development.

Opuwei said, “It is a step in the right direction but there is the need to do some sort of close monitoring of what goes around in those places. There should be close monitoring of the movement of goods and even humans. Also, the government needs to monitor the supply and distribution of Petroleum products from end to end.

READ: FG removes cap on petrol price, allows marketers to fix price

“So the reopening of the borders is a good thing because it will encourage trade between Nigeria and neighbouring countries but government needs to be proactive in ensuring that proper monitoring mechanisms are put in place.”

While making his own contribution, the Chairman, Major Oil Marketers Association of Nigeria (MOMAN), Tunji Oyebanji, said that the reopening of the borders might lead to resurgence of smuggling activities unless surveillance was intensified by security agencies.

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Oyebanji said smuggling of petroleum products was driven by the price disparity between Nigeria and her neighbouring countries.

He said, “Until we fix that, the attraction for smuggling will always be there. If we keep prevaricating between allowing market forces to determine price and then announcing price reductions, I don’t think we will see the end of smuggling.

“What I know is as long as you have an artificially low price in Nigeria, there will be an attraction to smuggle products to neighbouring countries. Of course open borders are likely to facilitate the process.”

READ: Dangote Cement given approval to export through land borders

READ: Borders to remain closed till Benin, Niger meet Nigeria’s conditions, FG vows 

What you should know about the border policy

• The Federal Government had on Wednesday announced the reopening of 4 land borders, namely: Seme, South-West; Illela, North-West; Maigatari border in the North-West; and Mfum in the South-South, after about 16 months of closure, in order to curtail smuggling of goods, arms and ammunition.
• The recent reopening of the borders will give rise to smuggling activities by some oil marketers, especially with the products sold for lower prices in the country when compared to neighbouring countries.

READ: Oil and Gas stakeholders ask government to grant access to CBN FOREX market and importation of petroleum products