Fuel smuggling in Nigeria is a persistent issue, severely impacting the economy and national security. Illegal fuel trade across key border points deprives the government of vital revenue, exacerbates fuel shortages, and fuels organized crime. Smugglers exploit price disparities between Nigeria and neighboring countries like Benin, Niger, Chad, and Cameroon, making this illicit activity highly profitable.
Major Borders Involved in Fuel Smuggling
Nigeria’s extensive land borders serve as critical channels for fuel smuggling. The following are the most notorious smuggling routes:
Western Borders (Nigeria – Benin Republic)
- Seme Border (Lagos State): A major smuggling hub, with an estimated 40,000–50,000 litres of petrol smuggled daily.
- Idiroko Border (Ogun State): A key route transporting 20,000–30,000 litres of subsidized fuel per day.
- Owode Apa Border (Badagry, Lagos): Facilitates smuggling of approximately 1 million litres daily.
Northern Borders (Nigeria – Niger)
- Maradi Border (Katsina State): Connects to Maradi, Niger, smuggling around 10,000 litres daily.
- Maiduguri Border (Borno State): An active smuggling corridor despite regional security challenges.
- Gusau Border (Zamfara State): Involved in smuggling fuel and agricultural products.
- Dutse Border (Jigawa State): Facilitates illicit trade of fuel and grains.
- Jibiya Border (Katsina State): Reports suggest 10,000 litres of fuel smuggled daily.
- Kano Border with Niger: A strategic but less-documented route.
- Sokoto Border with Niger: Used for fuel smuggling and livestock trade.
Eastern Borders (Nigeria – Cameroon)
- Mfum Border (Cross River State): A major crossing where 1 million litres of fuel are smuggled daily.
- Ikom Border (Cross River State): Another smuggling hotspot in the region.
- Bebetu Border (Taraba State): Contributes to cross-border illicit trade.
- Borno-Maiduguri Border (Borno State): Reports indicate 7,000 litres smuggled daily.
- Ogoja Border (Cross River State): Plays a smaller role, with 2,000 litres daily.
Northeastern Borders (Nigeria – Chad)
- Dutse Border (Yobe State): A major conduit for illegal fuel trade.
- Lake Chad Border (Borno State): Smuggling occurs through informal water routes.
- Yobe State Border with Chad: Another less-known but active smuggling route.
Southern Borders (Maritime Smuggling)
- Nigerian Maritime Border (Atlantic Ocean): Fuel is smuggled via unregulated shipping routes.
Smuggling Hotspots in Other Regions
- Shaki Border (Oyo State): Smuggles 15,000 litres daily.
Estimated Scale of Fuel Smuggling in Nigeria
Reports from the Nigerian National Petroleum Corporation (NNPC) estimate that 5–10 million litres of fuel are smuggled out of Nigeria daily, driven by substantial price differences between Nigeria and its neighboring countries.
Smuggling Volume by Border
| Border Location | Estimated Daily Smuggling Volume (Litres) | Percentage of Total Smuggling |
| Seme (Lagos) | 40,000–50,000 | 0.8–1% |
| Idiroko (Ogun) | 20,000–30,000 | 0.4–0.6% |
| Owode Apa (Badagry, Lagos) | 1,000,000 | 20% |
| Maradi (Katsina) | 10,000 | 0.2% |
| Maiduguri (Borno) | 7,000 | 0.14% |
| Gusau (Zamfara) | 5,000 | 0.1% |
| Dutse (Jigawa) | 10,000 | 0.2% |
| Jibiya (Katsina) | 10,000 | 0.2% |
| Kano Border with Niger | 15,000 | 0.3% |
| Sokoto Border with Niger | 10,000 | 0.2% |
| Mfum (Cross River) | 1,000,000 | 20% |
| Ikom (Cross River) | 20,000 | 0.4% |
| Bebetu (Taraba) | 10,000 | 0.2% |
| Borno-Maiduguri (Borno) | 7,000 | 0.14% |
| Ogoja (Cross River) | 2,000 | 0.04% |
| Dutse (Yobe) | 10,000 | 0.2% |
| Lake Chad (Borno) | 5,000 | 0.1% |
| Yobe State Border with Chad | 5,000 | 0.1% |
| Shaki (Oyo) | 15,000 | 0.3% |
Note: Percentages are based on an estimated total of 5 million litres smuggled daily.
Consequences of Fuel Smuggling on Nigeria’s Economy
Fuel smuggling has severe economic consequences, including:
- Revenue Loss: Nigeria loses billions of Naira annually due to illegal fuel trade, depriving the government of essential tax revenue.
- Fuel Shortages: Smuggling creates artificial scarcity, leading to higher fuel prices and supply chain disruptions.
- Strengthening of Criminal Networks: Many smuggling syndicates are linked to organized crime, making enforcement difficult.
- Market Distortions: The illegal trade affects domestic fuel pricing, making it harder for ordinary Nigerians to access affordable fuel.
The Way Forward
To combat fuel smuggling, Nigeria must:
- Strengthen Border Surveillance: Increase security measures and deploy technology to monitor smuggling routes.
- Enhance Enforcement: Customs and security agencies should receive better resources and training to tackle illegal fuel trade.
- Reform Fuel Subsidies: Addressing fuel price disparities can reduce incentives for smuggling.
- Implement Stricter Penalties: Tougher laws and legal action against smugglers can serve as deterrents.
Final Thoughts
Fuel smuggling remains a significant challenge for Nigeria’s economy. By addressing key enforcement gaps and tackling price disparities, the government can curb illegal fuel trade and protect its revenue streams while ensuring affordable fuel access for Nigerians.
