Business
Fuel Smuggling Persists Along Nigeria-Benin Border
In spite of the Federal Government’s removal of subsidy on Premium Motor Spirit (PMS) or petrol, smuggling of the product into neighbouring Benin Republic persists because of price differential our correspondent reports.
Investigation at the border towns of Owode and Kpogidi in the Seme-Badagry area of Lagos State on Sunday showed that though the removal of the subsidy has increased the price per litre in Nigeria to about N140, the same litre was N250, officially, in Benin Republic.
Though the black market price of a litre of smuggled Nigerian petrol in Benin Republic has been increased to N200, it was still cheaper than buying from filling stations there at N250.
The Tide source also gathered that until the January 1 deregulation, which raised the pump price of petrol from N65 to about N140, smuggled Nigeria petrol was sold at N100 per litre in Benin Republic, while it was N200 a litre at the filling stations in the Francophone country.
Mr. Hunsu Padonu, a fuel hawker at Kpogidi a Beninoise border town near Owode-Apa, Badagry said that smuggling of petrol occurred mostly at night, and has remained profitable because it was still costlier in Benin Republic.
“Nothing has changed since the removal of fuel subsidy by the Nigerian government.
“The only thing is that there is a marginal loss in profit making here. But the business is still thriving here as usual,” Padonu said.
Our correspondent reports that petrol is usually sold in bottles at Kpogidi and most Beninoise towns bothering Nigeria.
Another source at Kpogidi said that the smugglers now buy petrol at N160 per litre in Nigeria and sell to the middlemen in the town at N170 per litre.
The middlemen, in turn, dispense to motorists at N200 per litre.
Further investigation revealed that residents of Kpogidi hardly patronised the filling stations that sold at the official pump price of N250 per litre.
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Sugar Tax ‘ll Threaten Manufacturing Sector, Says CPPE
In a statement, the Chief Executive Officer, CPPE, Muda Yusuf, said while public health concerns such as diabetes and cardiovascular diseases deserve attention, imposing an additional sugar-specific tax was economically risky and poorly suited to Nigeria’s current realities of high inflation, weak consumer purchasing power and rising production costs.
According to him, manufacturers in the non-alcoholic beverage segment are already facing heavy fiscal and cost pressures.
“The proposition of a sugar-specific tax is misplaced, economically risky, and weakly supported by empirical evidence, especially when viewed against Nigeria’s prevailing structural and macroeconomic realities.
The CPPE boss noted that retail prices of many non-alcoholic beverages have risen by about 50 per cent over the past two years, even without the introduction of new taxes, further squeezing consumers.
Yusuf further expressed reservation on the effectiveness of sugar taxes in addressing the root causes of non-communicable diseases in Nigeria.
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