• BUSINESS
    • FINANCE
    • LEGAL
    • RETAIL & CONSUMER
    • AUTOS & TRANSPORTATION
    • HEALTHCARE & PHARMACEUTICALS
    • MEDIA & TELECOM
    • AEROSPACE AND DEFENSE
    • ENERGY
  • MARKETS
    • EUROPEAN MARKETS
    • ASIAN MARKETS
    • U.S. MARKETS
    • COMMODITIES
    • EMERGING MARKETS
    • DEALS
    • RATES & BONDS
  • WORLD
    • UNITED STATES
    • EUROPE
    • UNITED KINGDOM
    • ASIA PACIFIC
    • MIDDLE EAST
    • AFRICA
    • CHINA
    • INDIA
    • JAPAN
    • AMERICAS
    • FRANCE
    • GERMANY
  • POLITICS
    • GOVERNMENT
    • UNITED STATES
    • US SUPREME COURT
  • TECH
    • ARTIFICIAL INTELLIGENCE
    • CYBERSECURITY
    • SPACE
    • DISRUPTED
  • COMMENTARY
  • BREAKINGVIEWS
    • BREAKINGVIEWS PREDICTIONS
  • MONEY
    • WEALTH
    • FUNDS
    • ETFS
  • LIFE
    • LIFESTYLE
    • SPORTS
    • SCIENCE
  • SECTORS
    • ENERGY
    • HEALTHCARE
    • MEDIA & TELECOM
    • SUSTAINABILITY
    • ENVIRONMENT
    • RETAIL & CONSUMER
    • AUTOS & TRANSPORTATION
    • AEROSPACE AND DEFENSE
FinanceTime
  • August 20th, 2026

FinanceTimeFinancetime

  • BUSINESS
    • FINANCE
    • LEGAL
    • RETAIL & CONSUMER
    • AUTOS & TRANSPORTATION
    • HEALTHCARE & PHARMACEUTICALS
    • MEDIA & TELECOM
    • AEROSPACE AND DEFENSE
    • ENERGY
  • MARKETS
    • EUROPEAN MARKETS
    • ASIAN MARKETS
    • U.S. MARKETS
    • COMMODITIES
    • EMERGING MARKETS
    • DEALS
    • RATES & BONDS
  • WORLD
    • UNITED STATES
    • EUROPE
    • UNITED KINGDOM
    • ASIA PACIFIC
    • MIDDLE EAST
    • AFRICA
    • CHINA
    • INDIA
    • JAPAN
    • AMERICAS
    • FRANCE
    • GERMANY
  • POLITICS
    • GOVERNMENT
    • UNITED STATES
    • US SUPREME COURT
  • TECH
    • ARTIFICIAL INTELLIGENCE
    • CYBERSECURITY
    • SPACE
    • DISRUPTED
  • COMMENTARY
  • BREAKINGVIEWS
    • BREAKINGVIEWS PREDICTIONS
  • MONEY
    • WEALTH
    • FUNDS
    • ETFS
  • LIFE
    • LIFESTYLE
    • SPORTS
    • SCIENCE
  • SECTORS
    • ENERGY
    • HEALTHCARE
    • MEDIA & TELECOM
    • SUSTAINABILITY
    • ENVIRONMENT
    • RETAIL & CONSUMER
    • AUTOS & TRANSPORTATION
    • AEROSPACE AND DEFENSE
Yaouba Ahmadou, in white dress, a semi-wholesaler of Nigeria's contraband fuel speaks with his workers in Garoua, Cameroon June 21, 2023. REUTERS/Desire Danga Essigue
Yaouba Ahmadou, in white dress, a semi-wholesaler of Nigeria's contraband fuel speaks with his workers in Garoua, Cameroon June 21, 2023. REUTERS/Desire Danga Essigue
A motorcycle taxi man gets his bike refuelled with smuggled Nigerian fuel in Garoua, Cameroon June 21, 2023. REUTERS/Desire Danga Essigue
A motorcycle taxi man gets his bike refuelled with smuggled Nigerian fuel in Garoua, Cameroon June 21, 2023. REUTERS/Desire Danga Essigue
Yaouba Ahmadou, in white dress, a semi-wholesaler of Nigeria's contraband fuel speaks with his workers in Garoua, Cameroon June 21, 2023. REUTERS/Desire Danga Essigue
Yaouba Ahmadou, in white dress, a semi-wholesaler of Nigeria's contraband fuel speaks with his workers in Garoua, Cameroon June 21, 2023. REUTERS/Desire Danga Essigue
Sawanga Antoine, informal fuel retailer waits for customers in front of his stall in Garoua, Cameroon June 21, 2023. REUTERS/Desire Danga Essigue
Sawanga Antoine, informal fuel retailer waits for customers in front of his stall in Garoua, Cameroon June 21, 2023. REUTERS/Desire Danga Essigue
Sawanga Antoine, informal fuel retailer waits for customers in front of his stall in Garoua, Cameroon June 21, 2023. REUTERS/Desire Danga Essigue
Sawanga Antoine, informal fuel retailer waits for customers in front of his stall in Garoua, Cameroon June 21, 2023. REUTERS/Desire Danga Essigue
Home
Markets
Commodities

As Nigeria scraps fuel subsidy, a vibrant black market collapses

June 26th, 2023 | 05:04 AM MARKETS Commodities 4

Facebook Twitter Google+ LinkedIn Pinterest

Worth reading...

Greek crews fight wildfire northwest of Athens for fourth day
Dangote refinery can be global jet fuel supplier, CEO says
Asia's imports of US crude surge, but can't offset Hormuz losses
US gasoline market set for fresh test after near-record stock draws
By Desire Danga Essigue

Things have been topsy turvy lately on the roadsides of West African nations where cheap contraband petrol from Nigeria has abruptly doubled in price, upending an informal sector that is central to the region's economic activity.

Since Nigeria scrapped a state fuel subsidy on May 31, black market fuel vendors and commercial drivers in Cameroon, Benin and Togo who were heavily reliant on petrol smuggled from Nigeria have seen their businesses collapse.

With supplies dwindling, queues have been forming at official petrol stations, where fuel is now competitively priced.

In Garoua, a town in northwest Cameroon about 60 km (37 miles) east of the Nigerian border, a litre of petrol on the black market used to sell for about 300 CFA francs ($0.48). Now the minimum is 600 CFA francs, vendors said.

"Supply has become scarce and customers think we're ripping them off with this high price, yet it's from Nigeria that prices have soared," said Perevet Dieudonne, a black market seller.

The knock-on effects on motorcycle-taxis, a form of public transport ubiquitous in West Africa, include conflict between riders who often live hand-to-mouth and customers who demand cheap fares no matter what.

Ousmanou Mal Djoulde, a rider in Garoua, said he had been forced to more than double his fares. Many customers were refusing to pay and business was agonisingly slow.

The trade in black market fuel is so central to the local economy that authorities either turn a blind eye or are complicit. A Reuters reporter in Garoua saw a Cameroonian customs officer sitting on a motorcycle-taxi that was being refuelled with smuggled Nigerian petrol.

RAMPANT SMUGGLING

There is no reliable data on the amount of fuel that is smuggled from Nigeria.

The head of Nigeria's state-controlled oil firm NNPC, the sole supplier, said early this month 66 million litres of petrol left its depots daily but could not say how much was consumed locally, though he admitted smuggling was rampant.

Independent energy experts and Nigeria's Dangote Petroleum Refinery - which expects to start producing petrol from early August to alleviate chronic fuel shortages - put Nigeria's total daily consumption below 40 million litres.

In Benin and Togo, small nations to the west of Nigeria, contraband fuel vendors have lost both supplies and customers while formerly sleepy official petrol stations are suddenly busy.

At Hilacondji, a border crossing between Togo and Benin, some black market fuel stalls were shut, while at others vendors waited among rows of empty plastic jerricans for potential deliveries.

"While we wait for the situation to improve, some have gone into fishing or other small businesses," said Ayi Hilla, who had been making a living from selling contraband fuel for 10 years but was now focusing on running a small roadside bar.

Some informal fuel depots were being demolished, and men who used to work there unloading and carrying petrol were now unemployed.

More than 80% of employment in Africa is informal, according to the United Nations, making the informal sector a key driver of economic activity.

In Cotonou, the commercial capital of Benin which is about 60 km from Nigeria, queues have been building up at official petrol stations and some have been unable to meet the sudden surge in demand, especially from "zemidjan", the local word for motorcycle-taxis.

"Before, we were selling about 2,000 litres per day, but now we're selling up to 7,000 litres per day," said a worker at the JNP fuel station who gave his first name, Janvier. He had just turned away four customers because supplies had run out.

"The zemidjan-men are even fighting to get served," said Janvier.

($1 = 626.4400 CFA francs)

  • Topic
  • Nigeria
  • PETROL/NEIGHBOURS (PIX)
Facebook Twitter Google+ LinkedIn Pinterest
Previous article Greek crews fight wildfire northwest of Athens for fourth day

Related Posts

Commodities
August 3rd, 2026

Greek crews fight wildfire northwest of Athens for fourth day

Commodities
June 2nd, 2026

Dangote refinery can be global jet fuel supplier, CEO says

Commodities
June 2nd, 2026

Asia's imports of US crude surge, but can't offset Hormuz losses

Commodities
June 1st, 2026

US gasoline market set for fresh test after near-record stock draws

Commodities
June 1st, 2026

China's crude oil imports slump, but it's economics not altruism

Commodities
May 29th, 2026

Mapping the Market: Gold approaches potential crossroads 

The Wire
Aug 20th 3 h ago
Formula 1

TWG Global says Cadillac F1 team and motorsport interests n...

Aug 20th 3 h ago
Soccer

Carrick praises Rashford's revival as Manchester United eye...

Aug 20th 4 h ago
Tennis

Alcaraz confirms US Open return after four-month injury lay...

Aug 20th 4 h ago
Asia Pacific

UN says two staff members detained in Afghanistan have been...

Aug 20th 4 h ago
Sports

Jets' Woody Johnson buys minority stake in Aston Martin F1 ...

TRENDING ON FINANCETIME
Aug 20th, 2026 Transactional

Carlyle-backed YipitData explores $2.5 billion-plus sale, sources say

Aug 20th, 2026 Sports

Blue Jays' Vladimir Guerrero Jr. (concussion) on rehab assignment

Aug 20th, 2026 Business

US Treasury buyback briefly eases bond rout, but debt worries persist

Aug 20th, 2026 Sports

Colts TE Tyler Warren (groin) to miss one week

Aug 20th, 2026 Cricket

Bangladesh Premier League will not take place this season, says BCB president

Markets-Sectors
TECHNOLOGY -0.29%

  • BUSINESS
  • MARKETS
  • WORLD
  • POLITICS
  • TECH
  • COMMENTARY
  • BREAKINGVIEWS
  • MONEY
  • LIFE
  • SECTORS
  • Back to top
FinanceTime
FinanceTime

World Business & Financial News, Breaking US & International News

Additional Services
  • Privacy-Policy
  • Terms and Conditions
© Financetime.org 2026. All rights reserved. Hosted by LeadsDeposit.com
Produced by C-iT