The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari has said that the removal of fuel subsidy in Nigeria was a massive game changer in curbing cross-border smuggling. In an interview with Channels TV on Sunday, October 13, Kyari made this claim, stating that the subsidy caused a pricing difference between Nigeria and its neighbours, which he said, made smuggling extremely lucrative.
Kyari emphasized that prior to the subsidy removal, the price differential was significant, encouraging smugglers to ship petroleum across borders.
However, “the removal of the subsidy has effectively calibrated fuel prices, eliminating the profitability of smuggling”, he said.
According to him, in addition to drastically reducing smuggling, the subsidy removal has also resulted in price parity and equalization with PMS price across borders.
Kyari said: “The removal of fuel subsidies in Nigeria has been a game-changer in the fight against cross-border smuggling.
“For decades, the subsidy created a lucrative opportunity for smugglers to profit from the price difference between Nigeria and neighbouring countries.
“This is a positive development for Nigeria’s energy sector, as it can help to ensure that consumers are paying fair prices for fuel.”
