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

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

Speaking to journalists in Abuja, Kyari explained that cross-border smuggling was widespread due to the fuel subsidy, as a 6,000-liter truck could fetch smugglers no less than ₦17 million per trip.

“For the past 47 years, Premium Motor Spirit (PMS) has always been subsidized, which created an arbitrage opportunity, meaning the price differed between locations,” he said. “When the President announced the subsidy removal in June, it adjusted the price, eliminating the profit margin for those smuggling fuel across borders.”

Kyari noted, “With a 6,000-liter truck, one could earn up to ₦17 million per trip. It’s difficult to discourage someone who can easily make twice that amount from just two trips, essentially covering the cost of the truck.”

He added that legally transporting a truckload to Maiduguri for around ₦8 million would yield a legitimate profit of less than ₦500,000. “Why would I opt for ₦17 million in profit and then go through the trouble of delivering to Maiduguri, where it could sit for a month, only to make ₦3 to ₦4 million?” he asked.