Petrol Smugglers Made ₦17m Per Truck Under Subsidy Regime – NNPC Boss, Kyari

The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, has revealed that petrol smugglers exploited weaknesses in the fuel subsidy system to make approximately ₦17 million per truck in neighboring countries.

Speaking to journalists in Abuja, Kyari explained that cross-border fuel smuggling was widespread due to the subsidy regime.

He noted that smugglers could earn at least ₦17 million from a 6,000-liter truck per trip.

“For 47 years, Premium Motor Spirit (PMS) has been subsidized, creating an arbitrage situation where there is a price difference between regions, making it cheaper in one area compared to another,” Kyari stated.

He added, “When the President announced the removal of the subsidy in June, it adjusted the price structure. Now, there is no incentive to smuggle fuel across borders, as the profits previously made are no longer achievable.

With a 6,000-liter truck, smugglers could make up to ₦17 million in profit per trip. Why would anyone choose to legally transport a truck to Maiduguri, for example, where the legitimate gain would be less than ₦500,000, instead of making millions through smuggling?”

Fuel prices across Nigeria surged on October 9, adding to the strain on citizens already facing the country’s worst economic crisis in decades. The state oil company has not commented on the sudden price increase of about 15 to 20 percent at fuel stations nationwide, marking the second hike in just over a month.

In early September, the NNPCL acknowledged significant debts to fuel suppliers, which led to a roughly 40 percent price increase to stabilize its finances.

The latest hike has further squeezed Nigerians who are struggling with rising inflation, soaring food costs, and a weakening naira. On the day of the increase, fuel prices jumped from ₦855 to ₦998 per liter ($0.53 to $0.62), with some locations exceeding ₦1,000 per liter, including Abuja and Kano. Private suppliers have already been selling fuel at higher rates.

After assuming office last year, President Bola Ahmed Tinubu promised that his economic reforms would attract foreign investment and improve the economy over time. However, since ending the fuel subsidy and allowing the naira to float, inflation has reached a 30-year high. Previously, petrol was sold for under ₦200 per liter.

The Nigeria Labour Congress (NLC) reacted to the latest increase by expressing disappointment and calling for an immediate reversal. Earlier this month, protests against economic