Fuel stations along Nigeria’s land borders were sealed leading to spike in fuel prices in places closer to the border. To prevent fuel smuggling, customs authorities banned deliveries of petroleum products to stations within 20 kilometers (12 miles) of the border. Going by the public commotion on account of the ban on sales around border, Nigeria’s lower chamber of parliament called on the customs service to lift the indefinite ban. Paradoxically, Nigeria the top oil producer in Africa, imports 90% of the fuel on account of the poor refining capacities, which the country is trying to beef up. But it may take a few more years for fully tapping the potentials since one of the largest refineries in the world to come up in the country is hit by time overruns.
It is estimated that 10-20% of Nigerian fuel is smuggled to neighboring countries, according to the Major Oil Marketers Association of Nigeria. This leads to heavy loses to the exchequer since the gasoline is highly subsidized by the government. As a result, the Nigerian Customs Service issued the directive on 6 November banning the sale of gasoline near the border to prevent smuggling. . Nigeria’s land borders have been closed to trade since late August.
