Motorists in Nigeria’s northeastern states of Adamawa and Taraba faced long lines and inflated black market fuel prices this week after nearly 2,000 gas stations abruptly shut down. The closures stemmed from a simmering dispute between gas station owners and customs officials over alleged fuel smuggling across the border to neighboring Cameroon.
Black Market Trade Re-Emerges After Price Shift
The Independent Petroleum Marketers Association of Nigeria (IPMAN) in the affected states called the strike in response to what they perceive as unfair targeting by customs. IPMAN chairman Dahiru Buba accused customs of seizing tanker trucks and shutting down gas stations belonging to their members on suspicion of smuggling petrol to Cameroon.
Historically, black market fuel vendors in Cameroon, Benin, and Togo have relied on cheaper, subsidized gasoline smuggled from Nigeria. When Nigeria scrapped its fuel subsidy program in 2023, the black market trade for cheap petrol dried up. However, the situation shifted again in June 2023 when the Nigerian government implemented a price cap on gasoline. This move, despite a weakening Nigerian currency, made Nigerian fuel cheaper than in neighboring countries, potentially reigniting smuggling attempts.
Customs officials initially seized tanker trucks belonging to IPMAN members, but after facing protests from the association, they released the vehicles. However, further seizures and the closure of several gas stations by customs triggered the mass shutdown of gas stations across Adamawa and Taraba. Buba emphasized IPMAN’s position, stating, “We cannot be quiet when our members are treated this way.”
Consumers Bear the Brunt as Negotiations Stalled
The gas station closures caused immediate fuel shortages in the region. Motorists seeking petrol were forced to turn to the black market, where fuel prices skyrocketed to 1,400 naira ($0.95) per liter – well above the official pump price of 650-750 naira. This price disparity highlights the potential disruption caused by the ongoing dispute.
Customs spokesperson Mangsi Lazarus defended the seizures, claiming they targeted tanker trucks suspected of being involved in smuggling activities. However, IPMAN is demanding greater transparency and a more collaborative approach from customs officials. Negotiations between the two parties are reportedly underway to resolve the dispute.
The situation in Nigeria’s northeast underscores the delicate balance between curbing fuel smuggling and ensuring a steady supply of affordable petrol for domestic consumers. A swift and transparent resolution to the dispute between customs and IPMAN is crucial to alleviate fuel shortages, stabilize black market prices, and protect legitimate businesses in the region.
Source: Reuters
