Nigeria Loses N80bn Daily to Petroleum Products Smuggling

Chairman of the Nigeria Shipowners Association, NISA, Niyi Labinjo, has revealed that the country is losing N80 billion daily to petroleum products smuggled into the country.

Labinjo, in an exclusive interview with Vanguard, explained that half the 1.8 million litres daily national need of Premium Motor Spirit, PMS, is smuggled into the country.

The NISA boss stated that the Nigerian National Petroleum Corporation, NNPC, said the daily PMS need of the country is 1.8 million litres and that it (NNPC) only supplies half the quantity while the other half is smuggled into the country.

He pointed out that this is done through the off-shore Lome and off-shore-Benin. Giving a breakdown of the loss, Labinjo pointed out that a 5,000 ton vessel laden with Automotive Gas Oil, AGO, costs N600 million.

He said half of the 1.8 million litres comes to down to 900,000 and if divided by 5,000 equal 108 (5,000). Should this be multiplied by N600 million, it comes down to N108 billion and a large chunk of this amount is lost daily through smuggling of the product, he said.

He advised that the smuggling of petroleum products through the off-shore Lome and off-shore-Benin must be stopped because of the effect on the nation’s economy.