Abba Hamisu Sani
Africa-Press – Nigeria. Nigeria shares a land border of 4,047 kilometers (2,515 miles) with it’s neighbors that include Cameroon: 1,690 km (1,050 mile) Niger: 1,497 (930 mile) Benin: 773 km (480 mile) Chad: 87 km (54 mile).
These borders provide harmful opportunities for economic ,social and cultural transactions between the Citizens of these Countries.
The economy of the Nigerian neighbors heavily depend on its neck being the most strong economically.
The Multiplier’s effect of Nigerian fuel Subsidy removal
By all indications the Nigerian government decision of fuel subsidy removal has impacted on other countries that have direct borders with Nigeria Particularly Cameroon, Niger Republic, Chad and Benin Republic .
Despite the fact that some of these countries are oil producers, they mostly rely on Nigerian petrol because of its low price which is courtesy of the Nigerian government subsidy meant for its citizens.
In an Investigation recently conducted by one the Nigeria’s prominent NewsPapers Daily Trust.
The Nigerian Petrol subsidized by the government has been smuggled to as far Ghana and Sudan.
Not to talk of Countries like Cameroon and Niger Republic that are immediate neighbors.
Cameroon, Niger, Benin Citizens Lament Fuel Subsidy Removal by Nigerian government
Prices of petroleum products have nearly doubled in Cameroon, Benin Republic and Niger following the removal of fuel subsidy .
Cheap petrol from Nigeria was regularly smuggled to as far as Sudan, a North African country, making it difficult for Nigerian authorities to save enough to provide services to the people.
The subsidy removal in Nigeria has also affected social and economic life in the neighboring countries, with sources saying black market activities have significantly reduced.
Nigerian Government Justifies its action
President Tinubu on Friday, June 9, has justified the action, stating that Nigeria cannot continue acting as ‘Father Christmas’ to neighboring countries.
He said this at an interactive session with the Royal Fathers under the aegis of the National Council of Traditional Rulers of Nigeria (NCTRC) at the Aso Villa.
Daily Trust findings learnt that petroleum products are being sold at CFA700 or CFA 800 in Benin Republic, nearly double the previous price, CFA 450.
The development lends credence to reports that a significant volume of Nigeria’s subsidized petroleum products were being smuggled into other African countries.
Mele Kyari is The chief executive officer of the Nigerian National Petroleum Company (NNPC) Limited, He said that the Company knows how much it supplies. There is data on this. Is all of this consumed in the country? The answer is no. The reason is very simple. We have an arbitrage environment. For instance, before this decision we made, fuel sold at 185 Naira in Abuja, but just across our borders there is nowhere you would have prices that are lower than N500 per liter.
“None of the countries around us imports petroleum products, and you can’t do something about it because there is an arbitrage environment we have created. We have 4,500km of land borders and you don’t have all the resources to man them,” he said.
Businesses grounded in Neighboring Countries
Transporters, passengers and traders in neighboring countries said they were grounded by the increase in the price of petroleum in Nigeria.
They disclosed this to Daily Trust recently. Bio Abdourahamane, is a top player in the Nigerian petroleum sector.He admitted that subsidy removal in Nigeria would have more negative effect on his country.
He said that before the subsidy removal, smuggled Nigerian fuel used to flood his Niger Republic
oil market and most consumers preferred buying it due to its cheapness, thereby preventing them from selling their domestic fuel favorably.
“Nigeria was selling at 195 Naira and our domestic fuel sold at CFA508 (N381), so the smuggler took that advantage to exploit Niger’s market, selling below our liter price.
“At that time, we faced a lot of challenges selling our product because smuggled oil is cheaper, but now that the subsidy is removed, we can compete or even sell at a lesser price.
“But our fear is that if our fuel sells cheaper now, we would face the risk of shortage; and our product being smuggled into Nigeria, to Borno, Yobe, Kano, Katsina and Sokoto, among others and our fuel capacity is so little to accommodate that,” he said.
Malam Ali, is the chairman Niger/Nigerian transporters.He lamented that the subsidy removal had plunged vehicle owners and passengers into economic crisis.
“Petrol is now too expensive that our drivers and passengers cannot cope. A passenger will now pay 10, 000 Naira as transport for what he used to pay 6, 500, Naira” he lamented.
Situation same in Cameroon
Cameroonians living along the border with Nigeria have lamented the effect of subsidy removal calling on President Tinubu to reconsider the decision.
Fuel smuggled from Nigeria provides Cameroonian border communities with cheaper alternatives. In fact, many communities are without filling stations to dispense petroleum products; therefore, residents rely mainly on black marketers.
Residents told Daily Trust that life had not been easy since the announcement of subsidy removal by the Nigerian authorities. Commercial motorcycle operators across the border expressed fear that they would be pushed out of business.
It was learnt that they even staged a protest to press home their demands, but considering that the channel they used to get the fuel was not legal, there was no response.
Muhammadou Auwal, a businessman in Garhwa, said the increase in petrol prices took the people by surprise, saying the price of a liter of petrol suddenly jumped from around 300 to Naira 800 equivalent.
“We never expected it because the prices of Nigerian fuel, although unstable, had always been relatively low and affordable. This increase is pushing transporters out of business because here, you cannot increase transport fares as you wish.
We have our own local supply of fuel, only that border communities take advantage of cheap oil from Nigeria, which does not go beyond 150 kilometers. So it is limited to areas around the border, but it has a huge impact,” he said.
The pump price of petrol stands at CFA730, which is 900 , to 1, 000 naira equivalent, while the smuggled petrol, which previously sold at 300, has risen to 850 naira equivalent following subsidy removal.
Yahaya Bello, a resident of Beka, depends on his motorcycle for movement within the general area and across the border into Nigeria and petrol had never been a problem until recently when it became scarce and expensive.
Now, he needs 5, 200 naira to fuel his motorcycle instead of 2,000 he would need in the last few weeks to buy the same quantity of fuel from black marketers who lined the street with jerry-cans, making his weekly seven kilometer business trip to Gurin in Nigeria more expensive.
“I live seven kilometers from Nigeria, so Nigerian fuel is more accessible to us. There is no filling station at Beka, Troua, Pole, Chamba and Wangai. All of these communities depend on fuel supply from Nigeria and the current situation is frightening. You begin to wonder what life would be if the price remains this high,” he stated.
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