Despite subsidy removal, petrol smuggling to Benin Republic flourishes

Taiwo Josu, a young lady in her 20s, strapped a school bag on her back; another of such bag was fastened on her chest, while a sack sat on her head. She appeared like someone set for the space, as she walked slowly under the heavy weight of what she carried this sweltering afternoon.

Josu was walking into Benin Republic from the Nigeria-Seme Border corridor through one of the illegal bush paths with Gandonou, an energetic 35-year-old young man whose family’s livelihood depends on petrol smuggling.

Unlike Josu, Gandonou hardly spends an entire night at home with his wife and kids. He often sneaks through the bush on his moped and illegally crosses over into Nigeria, where he fills jerry cans with fuel. He then returns home the same night. In the daytime, his wife, Ajuwa, sells the fuel to moped riders and car drivers on the roadside of the Cotonou-Port-Novo expressway.

The movement of these partners in crime betrayed the impression of Nigerians that the removal of fuel subsidy would lead to non-smuggling of petrol to neighbouring countries. It wouldn’t take long to encounter petroleum smugglers.

Recall that President Bola Ahmed Tinubu, during his inaugural speech on May 29, 2023, had said without missing words, “the era of fuel subsidy is gone.”

Before then, to some Nigerians and stakeholders, subsidising of petroleum products not only has huge negative implication for the country’s revenue and spending on critical infrastructure, but also gave room for smuggling of the product across Nigerian borders.

Along the border, petrol smuggling is a big business that involves natives of both Nigeria and Benin. Despite the subsidy, it is continuing at an insignificantly reduced scale.

In the wide swathes of dense jungles and shrubs of the borders with this French-speaking country, there are hundreds of smuggling routes, some known to Customs officers, others newly invented, used by smuggling gangs from Seme in Lagos, to Kishi in Oyo State, and Ipokia in Ogun State, even up North.

The vast topography and extensive landscape for operation makes it easier for this illegal trade, which has negatively impacted the relationship between the two countries, flourish. In fact, at a time, the border between these ECOWAS members was closed for months.

Though Gandonou acknowledges that this illegal business has become more difficult, as petrol is no longer easily available on the other side of the border, he still goes home with at least 100 litres.

With Josu, they used to smuggle above 500 litres daily, now they consider it good business to get 150 litres.
In Nigeria, it is believed that smuggling of petrol to neighbouring countries led to the country’s daily petrol consumption to soar high, making it spend more in the attempt to subsidise the product for Nigerians comfort.

Sometime, earlier in the year, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, disclosed that, in 2022, more than N4trillion went into paying subsidy on petrol.

But months after the president removed subsidy on petrol, the product is still being smuggled into countries like Benin Republic, just as Nigeria’s daily petrol consumption has also dropped.

The Guardian was at Badagry, Seme and Benin Republic, and it is still business as usual, as smugglers had not backed out, operating across the borders 24 hours of the day.

A testament to this was the recent explosion accident in Seme Podji corridor of Benin Republic, in September 2023, where not less than 34 persons reportedly died while over 20 who survived had varied severe burns. The incident, it was reported, occurred at a warehouse where smuggled petrol from Nigeria is purchased by Beninese.


One of the checkpoints on the badagry-Seme Road

Investigations by The Guardian revealed that despite the removal of subsidy that has tripled the price of petrol in Nigeria, there is still market for smuggled petrol from Nigeria to Benin Republic because the official price of a litre of petrol in Benin Republic is still higher compared to the price in Nigeria.

Findings revealed that smuggled petrol from Nigeria sold in black market is cheaper compared to the official price of a litre of petrol in Benin Republic. While the official price for a litre of petrol is 800CFA, the black market price was between 550CFA and 650CFA, when The Guardian visited Benin republic.

During the visit, in Badagry, a litre of petrol was being sold for between N640 and N650 at most filling stations. But in Benin Republic, a litre was being sold for 550 to 800 CFA, which when converted into naira translate to between N1000 to N1400.

Some Nigerians had commended Tinubu for removing subsidy in spite of the biting effect of the policy on the average citizens. To these Nigerians, the removal of subsidy is why there is a huge difference in the figure of daily petrol consumption pre and post subsidy removal in Nigeria.

Before subsidy was removed, Nigeria’s average daily petrol consumption was said to be averagely 66 million litres daily, but after the removal of fuel subsidy in late May 2023, the daily petrol consumption in Nigeria, is said, to have dropped by 18 million litres daily.

But the drop in the country’s daily petrol consumption from The Guardian findings is actually not as a result of a stop in smuggling of the product, as men, women and children still ferry petrol from Badagry to Seme, while majorly men complete the job of getting the product into Benin Republic. There are more women who move the product from Badagry to the Seme border post corridor.

At Badagry, the petrol stations dispensing fuel had mostly women armed with all forms of containers and cellophane bags that they use in bagging and repackaging the petrol for onward movement to Seme and then its final destination, Benin Republic.

Disused water bottles of different sizes, gallons of varied shapes and bulks were used to buy and ferry the product. Some of the smugglers after buying the petrol in bottles or nylon; thereafter, package them in sacks of different shapes and sizes as well as bags of varied sizes.

It was learnt that those who package the petrol in small bottles and nylon did that not to fall prey to the Nigeria Customs officials and other security agencies to reduce the bribe that would be given to security personnel.

Some of the smugglers, who are more daring and have agreement with security personnel, it was gathered, are those who move their products in 50-litre gallons.

They put them on motorcycles and cars, which then helped to convey the product from Badagry to Seme enroute Benin Republic. The more daring smugglers also move petrol in jerry-cans through boats.
Investigation revealed that many of these smugglers, especially those who move the product in big jerry-cans, often had an understanding with the personnel of security agencies, who overlook their activities, but take count of the number of time they move the product across the checkpoints.

However, there are those who operate on the pay as you go basis. It was learnt that those who operate on this basis are the small smugglers who moved their petrol in bottles, small sacks, bags and nylons.

There are also smugglers including commercial bus drivers who move the product across border or to Seme by expanding their vehicles’ fuel tank capacity to at least a triple of its size or create additional fuel tank within the vehicle.

Many of these smugglers, who move the petrol in nylon, bags and bottles, sourced their goods, mainly in Badagry, especially Badagry Roundabout corridor.

Also, many of the filling stations seem readily available to serve majorly smugglers who are ready to buy at above the normal pump prices. A number of the petrol stations that were dispensing fuel that was visited by The Guardian, especially those cashing in on the smuggling market, were selling a litre of petrol for between N640 to N650.

This is aside the tips the petrol attendants get from these smugglers. Those who were selling at the average market price of N600 were not dispensing fuel to those buying in gallons, bottles or nylon. And in such filling stations, there are usually long queues of vehicles waiting to buy fuel. However, there was just one or two of such petrol stations on that corridor.

But many residents, especially those in Seme are not happy with the development, saying smuggling activities make them pay more for fuel. On the Nigeria side of the Seme border, a litre of fuel goes for between N800 and N900.

It was observed that despite the good number of petrol stations around the Seme border corridor, they were not dispensing fuel. Many of the filling stations appeared abandoned and dilapidated.

It was gathered that many of them became non-functional, when as a result of smuggling activities; the Federal Government in 2019 stopped the supply of fuel to communities within 20 kilometre to the border.

Sharing her experience, Dorcas Hunja, said that many of the filling stations within the Seme border do not dispense fuel, as a result, the residents either buy from black market that comes at a higher price or go to Badagry that comes with pain and additional cost, which eventually amount to a higher price too and almost the same cost with the black market price.

She said: “To buy petrol from those selling in gallon and bottles within our neighbourhood in Seme, it is between N800 and N900 currently. If you are not willing to buy from them probably because of the price, the option is to go to Badagry, which comes with security agencies treating you as a smuggler, especially if you carry more than five litres of petrol. And when you consider going to buy five litres of fuel in Badagry, yet a return trip fare for Seme-Badagry is between N1000 and N1400. With that, whatever gain that is enjoined from buying the petrol at even N600 is eroded by the transport fare. So, many residents in Seme just buy from the black market.”

She, therefore, pleaded with government to devise a strategy that would help Seme border residents to have access to petrol at the official price, noting that the illegal routes around the border post should have been where the security agencies should mount the multiple security checkpoints and not access road to the border post.

Also, a resident of Badagry, Peter Dosu, claimed that smuggling activities is why residents pay a little more for a litre compared to what the product is sold in the city.

He said that residents of Badagry usually pay at least N50 more for every litre of fuel bought at filling stations owing to smuggling activities. He added that most filling stations selling at N600 usually have long queue of vehicles waiting to buy, which then means spending more time buying the product, with the option being going to petrol stations with higher rate but with no queue.

Of note is that, despite the multiplicity of the security checkpoints that dot the Badagry-Seme corridor, especially from Badagry roundabout, many are still moving the product across the checkpoints and borders once the right fee is paid. This is aside those who smuggle petrol through the waterways.

What many of the smugglers are often apprehensive of is what to pay so that it does not erode the profit to be made at the end of their ‘business’ and not about whether the product would be seized most times.

At each of the checkpoints manned by the police, customs, and the army, as well as other security agencies, if the officers are not collecting bribe from the smugglers directly, they had locals who manned the checkpoints on their behalf, though these security personnel usually sit within the checkpoint corridor monitoring the operations and the returns.

It was observed that in most instances that the security officers or their proxies check a vehicle, it was to survey the volume of product carried, as it determines what would be charged and paid to allow for onward movement.

It was also observed that some of the commercial drivers demand a higher fare from passengers carrying petrol above five litres. In such case, the driver is expected to pave the way across the checkpoints for the passenger and the content by paying the officers of the security agencies at each of the checkpoints. In instances the commercial vehicle driver does not charge extra fare, it is the smuggler that would sort himself or herself out at each of the checkpoints.

A driver, simply identified as Chukwuemeka, said that he does not pick passengers ferrying petrol because the stoppage time at each of the many checkpoints by security agencies often lead to time wasting.
“If the security agencies’ officials know you don’t move petrol or convey smugglers ferrying fuel, once you get to each checkpoint, the officers or their boys allow you to drive pass without delay, but that is not the case if they know you aid those smuggling petrol regularly.”

He revealed that he used to move passengers smuggling petrol, but he stopped because after paying at each of the multiple checkpoints, he noticed that he always suffered losses.

According to him, though he usually charge the passengers smuggling petrol extra, but on many occasions, what he charged extra is wasted in paying the security officers mounting the multiple checkpoints, while at other times, he even spent more than the extra he had charged.
“So, I felt it was not profitable. Despite I will not make extra money by carrying these smugglers, I will still spend longer time on the journey because sometimes we spend time hassling with the security officers who want more and this leads to argument and negotiation.”

Also, in the business of helping to move petrol in vehicles and motorcycles from Badagry to Seme, and sometimes, across the border are security officers, while some others actively participate in smuggling the product themselves for personal economic gains.
It was, however, observed that men mostly smuggle the products into Benin Republic on motorcycles, vehicles and cart, while women move the product on their head or strapped on their backs or chests as they walk into Benin Republic.

It seems the hurdle is usually getting the product to Seme, crossing the product to Benin Republic, thereafter, does not pose much difficulty. This could be because of the many illegal routes available between Nigeria and Benin Republic.
Nigeria’s porous border is said to span over 17,000 kilometres, with the Border Communities Development Agency saying that there are over 2000 border communities in 21 states across Nigeria. Efforts to use technology to monitor the border, especially the porous routes, led to the Federal Executive Council approving a N52 billion contract to purchase e-border surveillance systems in 2019.

There are layers of security officers mounting checkpoints between Badagry and Seme, but that is not the case with many of the illegal border points, including those sharing fence with the border post. Although there are checkpoints at the illegal routes, but not the high number available around the Badagry-Seme road.

It was learnt that, occasionally, custom officers raid the illegal routes corridor to confiscate goods and petrol.

Despite the pains that sometimes come with smuggling petrol why does she continue to engage in the illegality, a woman, who simply gave her name as Ratsiki, said that she has been in the business for about five years and she is enjoying it. She claimed she makes a better living engaging in smuggling than doing any other business.

“If I am lucky, I can make N10,000 on a trip smuggling petrol. Which business will I do that will give me that much. Yes, there are times when I have lost my product to customs or security agencies, but it has not deterred me from continuing the ‘business’.”

Speaking on how smuggling activities negatively affect residents of border communities, Mr. Francis Solomon, who worked in Owode-apa for many years, but now lives in Badagry town, noted that from Gbaji to Owode-apa, there is no single filling station. With that, all residents are expected to come to Badagry to buy fuel.

“The most pathetic part of the story is that many residents of border communities have to travel down to Badagry Township before they can get a litre of fuel and when returning, they pass through the rigour of security checkpoints. It makes life seriously unbearable for them.

“Whatever reason you need fuel for, you go through harassment. And it is why things are expensive in these border communities. Transport fare is triple the amount it ought to be, coupled with bad road. The activities of the smugglers are a huge problem to residents because the oil marketers, especially those within the Badagry Roundabout axis give preference to smugglers. It is the smugglers that buy their product off most times, once they are supplied. Generally, it has been a difficult experience.”

Solomon added that the smugglers have access to petrol than the residents, as some of the filling stations only attend to residents’ petrol need after satisfying the smugglers’ request.

Providing insight into the activities of smugglers and corroborating The Guardian findings, he said: “In Owode-apa, there are bush paths that link Benin Republic. It is through these routes that the smugglers take petrol out of Nigeria. We have those who use kegs, they will fill the kegs and they move in the night, while there are those who have worked on their car tanks. You can see a fine jeep with tinted glasses and you think it is a Very Important Person (VIP) or government officials that is in the car, the person is a smuggler. You may not even know, but the underneath tank of the vehicle has been enlarged.

“The motorcyclists carry one to two kegs across. We have women who do not use vehicles or bikes; they pack their fuel in sack and bags and transport them to Benin Republic. They are packaged in such a way that you may not even know it is fuel that is in sack, nylon or bags. It has been harrowing experience for residents. Those us of that are consumers cannot easily drive in to buy, the smugglers have condoned off those places in collaboration with attendant and station managers.”

Solomon insisted that security officers are complicit, because if they are doing their job, there would be no room for smuggling in the scale that it is being carried out. “All the checkpoints, in every 10-metre, are there just for them to collect their own share. The law enforcement agents are there for personal gains. There is no seizure except if it is of a high scale to make name and pretend as if they are working. With the number of checkpoints, smugglers should not be passing, but once you settle, you are allowed to pass,” Solomon said.

When The Guardian contacted the spokesperson of the Customs in Seme, after getting a brief on the findings, he promised to get back but has not done so as at press time.