THE DECISION to shut down over 400 filling stations in Nigeria’s border communities since 2019 continues to fuel economic concerns, even as authorities maintain that the move is necessary to curb petrol smuggling. While the Nigeria Customs Service (NCS) insists on sustaining the closures, independent petroleum marketers argue that the policy has devastated businesses and employment.
The Explainer gathered that the crackdown, enforced under Operation Whirlwind, was initially introduced to prevent subsidised petrol from being smuggled into neighbouring countries. The issue gained renewed prominence following recent reports that petrol scarcity in Niger Republic had pushed prices to between N2,500 and N8,000 per litre.
Despite Nigeria’s subsidy removal in May 2023, which made fuel smuggling less attractive, Customs remains firm on keeping the affected filling stations closed. Spokesperson for the NCS, Abdullahi Maiwada, stated, “You can see us everywhere seizing smuggled fuel. Be it in Adamawa, Taraba, Kebbi, Seme, everywhere. I think if there is any successful operation, it is this Operation Whirlwind. We are really on them. We will not allow fuel to get out of Nigeria illegally.”
Oil marketers have expressed frustration over the continued shutdown of border-town petrol stations, arguing that the policy has outlived its usefulness now that subsidies are no longer in place. The Explainer gathered that thousands of jobs have been lost, and many business owners are struggling with massive financial losses.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), told journalists that the policy contradicts the Petroleum Industry Act (PIA) and should be reviewed. “Over 400 were shut since the government banned fuel supply in border communities. Since then, the owners of these filling stations have not been doing anything. But I also know that the office of the NSA has been on that matter. They are working with the NMDPRA to open the filling stations. They are planning to look at the matter,” he explained.
Ukadike stressed that, now that the subsidy removal has eliminated incentives for large-scale petrol smuggling, the filling stations should be allowed to operate again. He noted, “Now we are seeing the efforts of Operation Whirlwind, they should allow the stations to start selling fuel. In line with the PIA, the customs leading this operation are not empowered to seal filling stations. What they are empowered to do is to impound any truck that is crossing the border.”
The Explainer gathered that the continued ban has significantly disrupted economic activities in border communities where these stations were the primary source of petrol supply. Residents now struggle with fuel shortages, which in turn impact transportation, trade, and overall cost of living.
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While Nigeria grapples with the economic consequences of its border policies, Niger Republic is facing an unprecedented fuel crisis. The Explainer gathered that Niger, which previously sourced about 50 per cent of its petrol needs from Nigeria’s illegal black market, has been left in a dire situation since the Nigerian government tightened border controls.
The country’s only refinery, the Soraz Refinery in Zinder, is now overwhelmed by local demand. Maazou Oumani Aboubacar, the Commercial Director of Niger’s state-owned oil company Sonidep, confirmed to AFP that the refinery can only supply 25 tanker trucks of petrol per day, while the national demand is nearly double that figure. He revealed,
“The fuel that came into Niger illegally from Nigeria represented up to half of the market. It supplied the large regions near the border between the two countries.”
Economic experts argue that the situation was exacerbated by the Nigerien junta’s strained relationship with China.
The Explainer learned that in early 2024, Niger’s military government demanded an $80bn tax from the China National Petroleum Corporation (CNPC), despite already owing Soraz $250bn. When China refused further financial support, Niger retaliated by expelling Chinese oil executives and seizing Soraz’s bank accounts, effectively crippling its petroleum sector.
The long-term economic implications of Nigeria’s border fuel policy remain a topic of debate. While Customs argues that border controls have successfully reduced smuggling, the Explainer gathered that some industry analysts believe a more balanced approach is needed. Strengthening border security rather than shutting down filling stations may be a more sustainable strategy.
Ukadike emphasised the need for a policy shift, stating, “The shutting of petrol stations is not necessary because Nigerians are living around the border areas. So, you can’t continue to punish them just because some people are smuggling fuel across the border.”
He urged the government to empower Customs to monitor fuel transportation rather than completely shutting down legitimate businesses.
For Niger Republic, the current crisis highlights the dangers of over-reliance on Nigeria’s black market supply.
The country’s leadership is now seeking alternative solutions, with reports that Nigeria recently approved the supply of 300 fuel trucks to ease its situation. However, with tensions between Niger and ECOWAS remaining high, it remains uncertain whether long-term cooperation on energy trade can be restored.
As fuel smuggling from Nigeria continues to dry up, Niger Republic faces the reality of self-sufficiency struggles, while Nigerian petroleum marketers count their losses.
