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Home Economy

Fuel Subsidy Removal Leads to Decreased Fuel Smuggling – Customs

Stephen Akudike by Stephen Akudike
September 13, 2023
in Economy
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Fuel Subsidy Removal Leads to Decreased Fuel Smuggling – Customs
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The Adamawa/Taraba Area Command of the Nigeria Customs Service has announced a significant reduction in the smuggling of premium motor spirits (PMS), commonly known as fuel, following the removal of fuel subsidy. In a statement issued by the Customs Area Controller, Salisu Abdullahi, during a recent press briefing, he highlighted the command’s achievements in May and emphasized the decline in fuel smuggling activities.

According to Abdullahi, the command successfully confiscated a total of 14,980 liters of PMS concealed in drums and jerry cans. He further explained that due to the highly flammable nature of the seized petrol, most of it had been disposed of in accordance with standard operating procedures, with the accrued proceeds remitted to the Federation Account. The Controller also noted that the availability of fuel in all filling stations is a clear indication that the smuggling of PMS has significantly decreased since the removal of the subsidy.

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During the same period, the Adamawa/Taraba Area Command recorded 16 seizures of various contraband items. Among the seized goods were 494 bags of dry blended NPK fertilizers, three vehicles (including a Toyota Starlet and two Toyota Corollas) used for transporting foreign parboiled rice, 90 bags of foreign parboiled rice, and 960 pieces of foreign soaps. The total duty paid value of these seizures amounted to NN22.9 million.

Elaborating on the confiscation of the NPK fertilizers, Abdullahi explained that the restriction on the movement of the product, particularly in the Northeastern states, prompted its apprehension. He emphasized the importance of fertilizers during the current farming season, stating that farmers rely on them to enhance their crop yield. The Nigeria Customs Service, as one of the agencies responsible for implementing the government’s fertilizer movement policy, intercepted the dry blended NPK fertilizers in accordance with the National Fertilizer Quality (Control) Act of 2019, specifically Section 10, which restricts their transportation into the Northeastern states.

The Adamawa/Taraba Area Command of the Nigeria Customs Service remains committed to curbing smuggling activities and enforcing regulations to ensure the stability of the nation’s economy. With the removal of fuel subsidy contributing to a significant reduction in fuel smuggling, it is evident that the government’s policy decision has had a positive impact. The Customs authorities continue to employ stringent measures and surveillance techniques to prevent illegal activities and maintain a fair trade environment.

As the farming season progresses, the Nigeria Customs Service acknowledges the importance of facilitating the movement of essential agricultural inputs while adhering to regulatory frameworks. By upholding the law and curbing the smuggling of contraband items, the Customs Service aims to support the growth of local industries and ensure the nation’s economic prosperity.

 

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