Nigeria Loses N80bn Daily To Fuel Smuggling – NISA

Nigeria is said to be
losing a whopping N80 billion daily to petroleum products smuggled into the country.
The Chairman,  Nigeria Shipowners Association, (NISA), Capt Niyi  Labinjo, who disclosed this to newsmen said half of the 1.8 million litres daily national need of Premium Motor Spirit (PMS) is smuggled into the country.
The NISA boss said Nigeria National Petroleum Corporation (NNPC) only supplies 1.8 million litres while the other half is smuggled into the country.
He revealed that this is done through the off-shore Lome and off-shore-Benin.
He advised that the smuggling of petroleum products through the off-shore Lome and off-shore-Benin must be stopped because of the negative effect it has on the nation’s economy.
“This is outside the revenue that should have been collected by the various government agencies like the NPA, NIMASA, NCS etc should these ships have berthed at the nation’s ports”, he stated.
He said that the sector is more than capable of providing the N2 trillion needed to fund the budget, adding that the economic crime against the nation is being committed by foreign vessels that ship in these products.
He explained that while these ships are officially destinated for Nigeria according to their country home, they stop on the high seas where these products are discharged into smaller vessels and then moved into Nigeria.
According to him, about 68 per cent of these products get into the country unaccounted for and causing the nation huge revenue losses in terms of capital flight since the transaction is done in cash and not captured in the economy.
Labinjo lamented that Nigeria presently has no control over about 200 vessels, involved in this illegal trade outside the nation’s territorial waterways.
Noting that these illegal activities pose security threat to the country, the NISA boss said it is a matter of urgency for Nigeria to stop the smuggling of petroleum products into the country as well as ensure that the Cabotage Law is enforced fully.

Chris Oluoh