Fuel smuggling persists in borders despite subsidy removal – Customs boss
The Acting Comptroller-General of the Nigeria Customs Service, Adewale Adeniyi, on Monday, vowed a heavy clampdown on oil thieves, insisting that the nation cannot “afford to let saboteurs take over our economy.”
Adeniyi, who said there were still cases of smuggling of Premium Motor Spirit, popularly called petrol, at Nigeria’s border stations despite the removal of subsidy on the commodity, said the agency had adopted new border patrol strategies to close in on oil thieves.
He made the disclosure on the sidelines of a sensitisation workshop on the Nigeria Customs Service Act 2023 for management staff of the NCS in Abuja.
Adeniyi spoke as the Nigeria National Petroleum Company Limited on Monday said it intercepted a suspected Cameroon-bound vessel with a cargo of crude oil on board.
The Chief Corporate Communications Officer, NNPCL, Garba Muhammad, said in a statement that the cargo was intercepted on July 7, 2023, by a private security contractor engaged by the NNPCL, Messrs Tantita Security Services.
“Following the receipt of credible intelligence, a private security contractor engaged by NNPC Ltd., Messrs Tantita Security Services, intercepted a suspicious vessel with a cargo of crude oil on board on July 7, 2023,” the statement read in part.
It added that the vessel, which is owned by a Nigerian registered company, was heading to Cameroun when it was apprehended.
“The Vessel, MT TURA II (IMO number: 6620462), owned by a Nigerian Registered Company, Holab Maritime Services Limited with registration number RC813311, was heading to Cameroun with the cargo on board when it was apprehended at an offshore location (Latitude: 5.8197194477543235°, Longitude: 4.789002723991871°), with the Captain and Crew members on board,” it said.
President Bola Tinubu announced the end of the petrol subsidy during his inaugural address on May 29, 2023, after the Federal Government had kept subsidising the product for several decades, spending trillions of naira in the process.
The government had repeatedly complained that petrol from Nigeria was being smuggled to other West African countries, due to it low price in Nigeria as a result of subsidy, when compared to its cost in these nations.
To address this and other fuel subsidy-related concerns, a lot of institutions and professionals had called for a halt in the subsidy regime, which was eventually implemented by Tinubu.
But the Customs CG revealed on Monday that smuggling had reduced but it had not stopped in some border stations.
As such, he said the agency was reviewing its enforcement strategies, adding that based on the new Nigeria Customs Service Act 2023, there would be heavy penalties against violators of the recently passed legislation.
Asked whether petrol was still being smuggled out of Nigeria after the removal of subsidy on the commodity, he replied, “We still have some incidences in some border stations.
“The rate has reduced and we are going to be watching the situation very closely. The situation of fuel is very sensitive and we cannot afford to let the saboteurs take over our economy.”
Enforcement strategy review
Commenting on plans by the service to review policies that constitute obstacles to trade, Adeniyi said this had to do with the enforcement strategies of the NCS, as well as its procedures and processes at the ports.
“One of the things that I intend to do as we start is that we need to take a look at our procedures and processes in the ports and border areas. Also, our enforcement strategies. We are going to review all that.
“And we want to do them in such a way that they promote user-friendliness and economic growth without compromising our national security. We will get details when we unfold the plans,” Adeniyi stated.
He said the new legislation of the service would impose heavy sanctions and penalties on violators of customs laws.
“We discovered that the previous legislation did not provide sanctions that are punitive enough for violations of customs laws. Some of the fines were ridiculous. Remember that this (old) piece of legislation was put in place in 1958.
“You won’t believe that in some parts of the legislation, some fines were written on pennies, and when you translate them they mean nothing. So criminals are always willing to commit fraud because they know that they are only going to get a slap on the wrist.
“So what this new law has brought are very heavy punitive sanctions that should deter people from committing those violations against the customs law,” the NCS boss stated.
He said the defunct Customs and Excise Management Act Cap C45 LFN 2004 law was enacted 63 years ago and had remained in operation since then without any significant amendment notwithstanding the expansion in government, growth in population and over dynamic progress and challenges in the economy.
“Consequent upon this, several attempts were made in the past to cause amendments or the repeal of CEMA to no avail. The efforts were necessary because the provisions of CEMA had become obsolete and could no longer adequately meet the contemporary fiscal policies of the government and the mandate of the service.
“This situation undoubtedly propelled the National Assembly through a private member bill to initiate the repeal and enactment of a new Nigeria Customs Service Bill which was passed by the parliament and assented to by (former) President Muhammadu Buhari,” Adeniyi stated.
Punch
