Nigeria’s recent removal of petrol subsidies has significantly impacted the operations of smugglers as the country now sells petrol at a similar price point to other African nations. This development has rendered petrol smuggling less lucrative, according to recent reports.

A comparative study analyzing the recent increase in petrol prices in Nigeria reveals that the country’s petrol is now sold at prices comparable to its neighbouring West African countries. This convergence of prices across Africa has eliminated the arbitrage opportunities that previously incentivized the illicit petrol smuggling industry. Consequently, this move has had a positive impact on Nigeria’s economy.

Data from Global Petrol Prices indicate that the disparity in petrol prices between Nigeria and the Benin Republic is now less than N150, with a similar trend observed in several other West African countries. The minimal price difference highlights the efficacy of Nigeria’s subsidy removal in discouraging the market for illicit petrol trade across Africa.

The harmonization of petrol prices within the region underscores Nigeria’s commitment to market competitiveness and alignment with regional standards. As a result, the disparity in prices that once facilitated smuggling has been significantly reduced, benefiting Nigeria’s economy and deterring unlawful activities.