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Nairaland Forum / Nairaland / General / Politics / Border Close;Nigeria Subsidising Fuel Consumption In West Africa- The Guardian (656 Views)
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Border Close;Nigeria Subsidising Fuel Consumption In West Africa- The Guardian by Biodun556(m): 9:37am On Sep 22, 2019 |
A tricycle specially designed for fuel smuggling is parked close to the Nigerian-Benin border post in Seme-Kpodji, the Republic of Benin on April 6, 2019. PHOTO Boasting a population of 25 million, the markets of Cameroon are full to bursting... ...wandering along the red clay roads, there are two barrels of illegally smuggled oil. Cameroon produces over 16.86 million barrels of crude oil every year, yet Ndian, one of the country’s biggest principalities has no filling stations as at 2018. Instead, in its bustling markets, yellow red-capped containers of oil are bought and sold at less than half the price of petrol in its filling stations. This petrol, locally called zoa zoa, is cheap, of poor quality and entirely Nigerian. With a crude oil production capacity of 2.5 million barrels per day, Nigeria ranks as Africa’s largest oil producer and the sixth-largest oil-producing country in the world, ranking over Oman, the United Kingdom and Pakistan. With over 37.2 billion barrels of proven oil reserves, oil in Nigeria is the cheapest in West Africa. Petrol in Nigeria costs 40 cents, a staggering difference to the $1.05 average of its West African neighbours – Benin, Cameroon, Togo, Senegal, The Gambia and Liberia, etc. Petrol prices in Nigeria are directly subsidised by the government, with this year’s projected budget being estimated at N1.149,385 trillion. With the global price of oil rising from $49.49 per barrel in 2015 to as much as $75.78 in 2019, the cost of the Nigerian fuel subsidy is threatening to exceed the Nigerian treasury’s pocket but while Nigeria boasts the 7th largest population in the world, a significant proportion of the 512,000 barrels of oil consumed by the country daily isn’t burned in Nigerian cars. Illegal oil smuggling and bunkering is a highly organised criminal activity in Nigeria with Dr. Maikanti Baru, the immediate past managing director of the Nigerian National Petroleum Corporation (NNPC), claiming it costs Nigeria 10 million litres of petrol daily. And The Human Rights Watch claiming it accounts for 10% of the entirety of Nigeria’s oil production. “The subsidy regime in Nigeria provides an economic incentive for smuggling Nigerian petrol to our neighbours,” SBM Intelligence, a socio-financial research company based in Lagos, said in a report published on its website. Methods such as hot-tapping and cold-tapping steal thousands of barrels of oil per day from established oil pipelines. Along with this is the armed robbery of crude oil transportation vehicles on their way to shipping terminals for export. The profits to be made are extensive. With no capital costs—the infrastructure belongs to the Nigerian government and the oil companies — the profit is usually around the US $2-3 million daily with an assumed figure of 150,000 bpd of stolen oil. The stolen oil is transported through two main channels: the barrels are either loaded onto huge trucks and driven into neighbouring regions or they’re loaded onto longboats and transported to neighbouring countries through many of Nigeria’s bounteous rivers. When they reach their destination country, everywhere ranging from Benin, Ghana, Togo, Cape Verde and Niger, they are picked up by motorcyclists and driven through the winding, steep roads to be sold in marketplaces. This corrupt cycle is estimated to cost Nigeria $2 billion daily but the cost is more than financial. The motorcyclists who carry this dangerous cargo are commonly referred to as “human bombs” in Benin due to recurring explosions from carrying such volatile and hazardous material. Explosions due to illegal oil bunkering have claimed thousands of lives all over West Africa. But the cost of lives for many Western African countries, is worth the profit. The highly profitable illegal oil thieving business is so successful it’s come to single-handedly fund several African countries’ economies. In Benin alone, it is a business that generates 105 billion CFA every year (around US$172 million) according to Javier Corso of Equal Times. It’s been so profitable it’s not only widely accepted in Benin, it’s legal. The illegal transport is governed by the Association of Importers, Transporters and Retailers of Oil Products (AITRPP), an officially registered body, despite its illegal dealings whose very business is founded on stolen Nigerian wealth. But other countries do not share the blame alone. The Nigerian government’s system for selling its own oil attracts many shady middlemen, creating a confusing, high-risk marketplace. Nigeria’s oil industry is also one of the least transparent in the world in terms of sales and associated revenues. There’s much room for improvement in our governing system but it seems the administration is beginning to take the first steps to fill it. In April, the Department of Petroleum Resources (DPR) employed the help of French data firm Kpler to help deploy satellite tech over the Niger Delta river, the smuggling syndicate’s most popular route, to weasel out illegal ships. But these steps are still small despite the huge effects this business is having on the country: fuel shortages, explosive fires, environmental destruction of oil spills and reduced GDP. In Togo, The Gambia, Cape Verde, Ghana, Sierra Leone, Mali, Côte d’Ivoire, Liberia, Benin, Burkina Faso, Guinea, Niger, Senegal and even as far out as India and Indonesia, Nigerian oil is fuelling cars, trucks, motorcycles and stoves while in Nigeria, the Union of Petroleum and Natural Gas Workers, NUPENG often go on strike to push certain demands. Oil has always been Nigeria’s biggest export, yet it seems we didn’t realise just how much the country is losing every day.
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Re: Border Close;Nigeria Subsidising Fuel Consumption In West Africa- The Guardian by Okoroawusa: 9:41am On Sep 22, 2019 |
I Love PMB |
Re: Border Close;Nigeria Subsidising Fuel Consumption In West Africa- The Guardian by madridguy(m): 9:42am On Sep 22, 2019 |
In Togo, The Gambia, Cape Verde, Ghana, Sierra Leone, Mali, Côte d’Ivoire, Liberia, Benin, Burkina Faso, Guinea, Niger, Senegal and even as far out as India and Indonesia, Nigerian oil is fuelling cars, trucks, motorcycles and stoves while in Nigeria, the Union of Petroleum and Natural Gas Workers, NUPENG often go on strike to push certain demands. 1 Like 2 Shares |
Re: Border Close;Nigeria Subsidising Fuel Consumption In West Africa- The Guardian by Nobody: 9:49am On Sep 22, 2019 |
Oboy this country done taya me, I swear ![]() |
Re: Border Close;Nigeria Subsidising Fuel Consumption In West Africa- The Guardian by ValCon888: 9:59am On Sep 22, 2019 |
The rot and corruption in this country stinks to the highest heavens. Life keeps getting harder for the common man and the future looks bleak. It will take more than a hundred years to set this country in the right path. That is, if the entity called "Nigeria" has not disintegrated by then. 1 Like 1 Share |
Re: Border Close;Nigeria Subsidising Fuel Consumption In West Africa- The Guardian by Alanzazani: 3:11pm On Sep 22, 2019 |
Oil from the Niger Delta. This country eh. 1 Like 1 Share |
Re: Border Close;Nigeria Subsidising Fuel Consumption In West Africa- The Guardian by Charleys: 3:14pm On Sep 22, 2019 |
Thanks |
Re: Border Close;Nigeria Subsidising Fuel Consumption In West Africa- The Guardian by dalongjnr: 3:33pm On Sep 22, 2019 |
Hhhmm... It's sad. May the Lord help Nigeria but Nigerians should help themselves first/the country by doing the right things all the time even if it hurts the people we love/care. |
Re: Border Close;Nigeria Subsidising Fuel Consumption In West Africa- The Guardian by meezynetwork(m): 4:46pm On Sep 22, 2019 |
This country self |
Re: Border Close;Nigeria Subsidising Fuel Consumption In West Africa- The Guardian by Sunofgod(m): 4:53pm On Sep 22, 2019 |
Ok |
Re: Border Close;Nigeria Subsidising Fuel Consumption In West Africa- The Guardian by Sunofgod(m): 4:54pm On Sep 22, 2019 |
Mugu must pay! |
Re: Border Close;Nigeria Subsidising Fuel Consumption In West Africa- The Guardian by jkendy(m): 4:58pm On Sep 22, 2019 |
Still trying to make sense out of this analysis but the more I tried to arrive at a reasonable comprehension the more difficult the darkness of confusion. Can someone pls summarize in a simple term what this thread is all about ![]() |
Re: Border Close;Nigeria Subsidising Fuel Consumption In West Africa- The Guardian by mrvitalis(m): 5:21pm On Sep 22, 2019 |
jkendy:Subsidy makes no sense Fuel in nigeria is 40 cent that of other countries are above one dollar ...after we subsidies people take them outside n make sales at say 80 cents Final final na our money dey make fuel cheap for wear africa |
Re: Border Close;Nigeria Subsidising Fuel Consumption In West Africa- The Guardian by jkendy(m): 5:28pm On Sep 22, 2019 |
mrvitalis:Looks like a scam to me though |
Re: Border Close;Nigeria Subsidising Fuel Consumption In West Africa- The Guardian by mrvitalis(m): 5:42pm On Sep 22, 2019 |
jkendy:Obviously |
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