Nigeria Customs: Leading the Charge Against Petroleum Smuggling

Nigeria Customs: Leading the Charge Against Petroleum Smuggling By Abdulsalam Mahmud,

The rate at which crude oil is stolen and petroleum smuggled out of the country by economic saboteurs has become alarming. Crude oil theft and petrol smuggling are severely damaging Nigeria’s economy.

These twin vices significantly reduce the enormous revenue that would otherwise accrue to the country if hydrocarbon products were legally sold to both local and international markets.

In 2013, the then Minister of Finance and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, revealed to journalists at the Spring Meeting of the World Bank and the International Monetary Fund (IMF) in Washington DC, United States, that the federal government was losing $1 billion monthly to crude oil theft, amounting to $12 billion annually.

The Nigeria Natural Resource Charter (NNRC) also estimated that the country lost N1.6 trillion in 2016 and N995 billion in 2017 to crude oil theft, translating to a loss of about $8.9 million daily and a combined loss of N2.6 trillion over the two-year period.

Between 2015 and 2023, reports indicate that approximately 250,000 barrels of crude oil were stolen daily. The pioneer Chairman of the Economic and Financial Crimes Commission (EFCC), Malam Nuhu Ribadu—now the National Security Adviser (NSA)—once declared that $9 billion was lost each year to oil theft.

The federal government, to its credit, has not left any stone unturned in its efforts to combat this economic crime. It has implemented strategic policy measures aimed at tightening the noose around crude thieves and smugglers.

The Nigerian Navy, through its “Operation Delta Safe,” continues to dismantle illegal refineries in the Niger Delta creeks. Naval troops have also been arresting pipeline vandals and oil looters, while intercepting massive volumes of smuggled and looted crude products in recent years.

In a bid to further strengthen the fight against petroleum smuggling, a high-level stakeholders’ meeting was convened on Monday, 9 September 2024, chaired by the National Security Adviser (NSA), Mallam Nuhu Ribadu.

The meeting brought together representatives from key agencies, including the Nigeria Customs Service (NCS), Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigerian National Petroleum Company Limited (NNPC Ltd.), and major stakeholders such as the Independent Petroleum Marketers Association of Nigeria (IPMAN).

After extensive deliberations, several key resolutions were adopted. First and foremost, a comprehensive public awareness campaign was launched to educate Nigerians on the detrimental effects of petroleum smuggling on both the economy and national security.

This campaign, spearheaded by all participating agencies, will leverage various media platforms to reach different segments of society. Moreover, all stakeholders categorically disassociated themselves from any smuggling activities and committed to stricter internal controls.

They pledged to fully cooperate with the Nigeria Customs and other relevant agencies by reporting suspected cases of smuggling. To ensure continuous improvement, a formal mechanism for stakeholder feedback on anti-smuggling efforts was established.

This includes periodic review meetings where relevant agencies and associations will assess progress. Furthermore, the participants emphasized the importance of enhanced collaboration between the NCS, NMDPRA, NNPC Ltd., and security agencies to support “Operation Whirlwind.”

The establishment of a Centre for Linkages and Collaboration was agreed upon to unite all relevant stakeholders. Information sharing and joint operations were identified as crucial measures for combating smuggling more effectively.

Recognizing the high operational costs, the meeting resolved to push for increased budgetary allocations for Operation Whirlwind, with all agencies pledging their support in securing necessary funding. The NNPC Ltd., NMDPRA, and NCS also committed to exploring advanced technologies to improve monitoring and control of petroleum product movements throughout the supply chain.

Importantly, a strategy will be developed to actively engage community leaders, especially in border areas, as key partners in the fight against smuggling. Additionally, NSA Ribadu is tasked with coordinating efforts to strengthen the legal framework for anti-smuggling operations, including enforcing existing laws, enhancing penalties, and ensuring the prosecution of offenders.

In their final resolution, the NCS, in collaboration with the NMDPRA and NNPC Ltd., agreed to formulate a long-term, sustainable strategy for combating petroleum smuggling. This strategy will be reviewed annually under the supervision of the NSA to ensure its effectiveness and adaptability.

A joint monitoring team, comprising representatives from all participating agencies and associations, was established to oversee the implementation of these resolutions. The team will provide periodic progress reports to NSA Ribadu, ensuring transparency and accountability in the fight against smuggling.

The meeting concluded with a renewed commitment from all parties to work collaboratively to eliminate petroleum smuggling and safeguard the integrity of Nigeria’s petroleum supply chain.

With key stakeholders unified and robust strategies in place, there is hope that this menace can be effectively curtailed. Nigeria’s future and economic survival depend on ending petroleum smuggling now.

Mahmud, Deputy Editor of PRNigeria, can be reached via: [email protected].