Business

Vibrant West Africa’s Fuel Black Market Collapses On Nigeria’s Subsidy Removal

Published

2 years ago

June 27, 2023

Nigeria’s decision to eliminate fuel subsidies has had a significant impact, resulting in the collapse of a thriving black market in Vibrant West Africa’s Fuel Black Market Collapses On Nigeria’s Subsidy Removal. This informal sector, which played a central role in the region’s economic activity, has been disrupted as the price of cheap contraband Premium Motor Spirit, better known as petrol, from Nigeria suddenly doubled.

In a report on Monday, American news platform, Reuters, noted that black market fuel vendors and commercial drivers in Cameroon, Benin and Togo, who heavily relied on smuggled petrol from Nigeria, have witnessed their businesses crumble since the subsidy removal. As fuel supplies dwindle, long queues have formed at official petrol stations, where prices are now competitive.

In Garoua, a town in North-West Cameroon near the Nigerian border, the cost of a litre of petrol on the black market used to be around 300 CFA francs (about $0.48) but it has skyrocketed to a minimum of 600 CFA francs, causing dissatisfaction among customers who perceive the high prices as unjustified.

The repercussions extend to commercial motorcycles, or okada, leading to conflicts between hand-to-mouth riders and customers demanding low fares, regardless of the circumstances.

Ousmanou Mal Djoulde, a rider in Garoua, has been forced to more than double his fares, resulting in many customers refusing to pay and business becoming painfully slow, Reuters reported.

The trade in black market fuel holds such significance in the local economy that authorities either turn a blind eye or are complicit. A Reuters reporter in Garoua observed a Cameroonian customs officer seated on a motorcycle being refuelled with smuggled Nigerian petrol.

Unfortunately, there is no reliable data on the volume of fuel smuggled from Nigeria. The head of Nigerian National Petroleum Corporation, Mele Kyari, acknowledged that 66 million litres of petrol leave their depots daily, but he could not provide an accurate estimate of local consumption. Smuggling is acknowledged to be rampant.

According to Reuters, Benin and Togo, neighbouring nations to the west of Nigeria, have also witnessed a decline in supplies and customers for contraband fuel vendors, while official petrol stations have experienced a sudden surge in activity. At the Hilacondji border crossing between Togo and Benin, some black market fuel stalls have closed, leaving vendors waiting with empty containers for potential deliveries.

In the absence of improvements, some individuals have sought alternative livelihoods such as fishing or engaging in other small businesses. The closure of informal fuel depots has left previously employed individuals without work, adding to the unemployment rate.

According to the United Nations, over 80% of employment in Africa is in the informal sector, making it a crucial driver of economic activity. In Cotonou, the commercial capital of Benin, located about 60 km from Nigeria, long queues have formed at official petrol stations, and some have struggled to meet the sudden surge in demand, particularly from commercial motorcyclist, locally known as “zemidjan.”

A worker at the JNP fuel station in Cotonou, named Janvier, reported that their daily sales have increased from around 2,000 litres to up to 7,000 litres. However, the heightened demand has caused supply shortages, forcing them to turn away customers.

Business

Naira Records Second Consecutive Depreciation Against US Dollar

Published

4 days ago

November 12, 2025

Editor

The Naira recorded its second consecutive depreciation against the United States dollar at the foreign exchange market on Tuesday to continue the bearish trend this week.

The Central Bank of Nigeria’s data showed that the Naira further weakened on Tuesday to N1,438.71 against the dollar, down from N1,437.2933 exchanged on Monday.

This means that the Naira again dropped by N1.42 against the dollar on Tuesday on a day-to-day basis.

At the black market, the Naira remained flat at N1465 per dollar on Tuesday, the same rate traded on Monday.

This is the second consecutive decline of Nigerian currency at the official market since the commencement of this week.

Meanwhile, the country’s external reserves had continued to rise, standing at $43.37 billion as of Monday, 10th November 2025, up from $43.35 billion on November 7.

Business

Tinubu Approves 15% Import Duty On Petrol, Diesel

Published

2 weeks ago

October 30, 2025

Editor

President Bola Tinubu has approved a 15 percent ad-valorem import duty on diesel and premium motor spirit (PMS), also known as petrol.

This was announced in a letter dated October 21, 2025, where the private secretary to the president, Damilotun Aderemi, conveyed Tinubu’s approval to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Tinubu gave his approval, following a request by the FIRS to apply the 15 percent duty on the cost, insurance and freight (CIF) to align import costs to domestic realities.

With the approval, the implementation of the import duty will increase a litre of petrol by an estimated N99.72 kobo.

The latest development has led to the Nigerian National Petroleum Company Limited (NNPCL) announcing that it has begun a detailed review of the country’s three petroleum refineries, with a view to bringing them back online.

NNPCL Group Chief Executive Officer (GCEO), Bayo Ojulari, made the announcement in a post on his official X handle on Wednesday night.

According to Ojulari, one of the options being explored by the NNPCL is to search for technical equity partners to ‘high-grade or repurpose’ the facilities.

Tagged: “Update on Our Refineries”, Ojulari said: “The NNPCL continues to remain optimistic that the refineries will operate efficiently, despite current setbacks.”

It can be recalled that despite spending about $3 billion on revamping the refineries, only the 60,000 barrels per day portion of the facility worked skeletally for just a few months before packing up.

The Warri refinery has remained ineffective weeks after it was gleefully announced to have returned to production, while the one situated in Kaduna State never took off at all.

Business

NNPCL Raises Fuel Price

Published

1 month ago

October 13, 2025

Editor

The Nigerian National Petroleum Company Limited (NNPCL) has increased the pump price of petrol from ₦865 to ₦992 per litre, marking a fresh hike that has sparked widespread concern among motorists and consumers .

As of the time of filing this report, the company has not released any official statement explaining the reason for the sudden adjustment.

During visits to several NNPC retail outlets, The Nation observed fuel attendants recalibrating their pumps to reflect the new price.

At NNPC filling station on Ogunusi road, Ojodu Berger, petrol attendants at the station said they were instructed to change the price to reflect the new rate N992 per litre.

However, checks at Ibafo along the Lagos /Ibadan expressway showed that NNPC outlets still displayed the old price of N875 per litre, although they were not selling to commuters.

Most of the NNPC stations were not dispensing fuel.