According to Mr. Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), the removal of fuel subsidies in Nigeria has significantly curtailed the cross-border smuggling of Premium Motor Spirit (PMS).

In an interview with Channels TV on Sunday, Kyari explained that the subsidy had created a price gap between Nigeria and its neighboring countries, making smuggling a highly lucrative business. Before the subsidy removal, the substantial price difference incentivized smugglers to transport fuel across borders for profit.

Kyari highlighted that the elimination of the subsidy has now “calibrated fuel prices,” making smuggling far less profitable. “The removal of the subsidy has effectively calibrated fuel prices, eliminating the profitability of smuggling,” Kyari said.

The NNPC boss also noted that the price disparity between legal and illegal transportation of PMS has decreased, making legal transportation much less attractive for smugglers. With price parity now achieved across borders, consumers are paying fairer prices for fuel, Kyari remarked.

“This is a positive development for Nigeria’s energy sector,” he added, stating that the change will promote fairness in the fuel market and discourage illegal activities.