Nigeria is losing an estimated 18 million litres of petrol daily to cross-border smuggling, according to Mr. Joe Uwakwe, former Chairman of the Society of Petroleum Engineers (SPE) Nigerian Council. Uwakwe made this statement during a webinar organized by the Major Energies Marketers Association of Nigeria (MEMAN) titled “Optimising the Nigerian Oil and Gas Industry.”
He revealed that these figures were the result of extensive research and highlighted the failure of fuel subsidy policies. Uwakwe argued that the continued subsidization of petrol benefits neighboring countries more than Nigeria, leading to significant economic losses. “Subsidy at the fuel pumps is failing,” he said. “If we continue to subsidize, there will be continued leakages, which is detrimental to our fragile economy.”
He explained that while the subsidy intervention is intended for Nigerians, it inadvertently serves citizens of neighboring West African nations due to smuggling that Nigeria loses 18 Million litres of Petrol daily to cross-border smuggling. Uwakwe called for an urgent reform of the current subsidy regime, stressing that the system is wasteful and ineffective.
Addressing the future of the oil and gas industry, Uwakwe emphasized the importance of fair pricing driven by competition and a strong, independent regulator focused on consumer protection. He suggested that allowing multiple suppliers and sources of petroleum products, whether through local production or imports, would ensure healthier competition and fair pricing. He warned against relying on a single supplier, as it could harm the industry’s growth.
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Uwakwe pointed out that many of the challenges in the oil and gas sector stem from policy issues, urging the Ministry of Petroleum Resources and its regulators to collaborate and align their objectives. He underscored the need for clear priorities to guide industry policy and decision-making.
Former MEMAN Chairman and Managing Director of 11 Plc (formerly Mobil Oil Plc), Mr. Tunji Oyebanji, also spoke at the webinar, urging stakeholders to resolve disputes internally rather than through public statements. He stressed the importance of dialogue between key industry players, including the Nigerian National Petroleum Company Limited (NNPCL), regulators, and Dangote, to ensure the industry’s progress.
MEMAN, he added, is working with stakeholders to consolidate discussions and move the industry forward collectively.
