Customs and NMDPRA tighten export controls to combat fuel diversion

The Nigeria Customs Service and the Nigerian Midstream and Downstream Petroleum Regulatory Authority are teaming up to solve the issue of fuel that is supposed to be used locally but is diverted elsewhere. This partnership is a key part of Nigeria’s bigger strategy to improve energy security and boost fuel exports.

This was discussed in a recent meeting between the head of the Customs Service, Adewale Adeniyi, and Mr. Ogbugo Ukoha, who oversees fuel distribution and storage at the regulatory authority. According to Abdullahi Maiwada, the Customs Service’s National Public Relations Officer, the meeting focused on ways to strengthen border controls, improve the sharing of important information, and coordinate enforcement efforts in line with recent changes in the petroleum sector.

The Nigeria Customs Service is joining forces with the Nigerian Midstream and Downstream Petroleum Regulatory Authority to tackle the problem of local petroleum products being illegally exported. This partnership is all about boosting Nigeria’s energy security and making sure that fuel meant for the country doesn’t leave its borders.

Adeniyi highlighted in his speech the need for authorities to cooperate to stop the export of petroleum products meant for Nigeria.

He also commended the success of collaborative efforts like Operation Whirlwind, which show just how effective teamwork and smart strategies can be in curbing these illegal activities.

Adeniyi pointed out that the Customs Service is fully on board with the ongoing changes in petroleum regulations. They are dedicated to offering valuable insights and support for border management to help put these new rules from the NMDPRA into action.

Adeniyi praised the Authority for updating traditional methods in line with the Petroleum Industry Act. He highlighted the importance of having clear and effective procedures for exporting oil as Nigeria moves from mainly importing to becoming a new exporter of refined petroleum products.

“We support any efforts that strengthen energy security and ensure that our progress in stopping illegal cross-border oil trade is upheld. It’s a shared responsibility to protect our national interests, promote legitimate trade, and create a transparent system that everyone can trust. We will keep working closely with other agencies to reach these goals,” he said.

In his comments, Executive Director Ukoha noted that the NMDPRA has built a strong partnership with the Nigeria Customs Service. He highlighted that their joint initiative, called Operation Whirlwind, has been vital in their cooperation.

He explained that both agencies have sent personnel, shared important information, and monitored oil products in border areas, which has resulted in a significant drop in illegal cross-border trade.

Ukoha added that the purpose of this visit was to inform the CGC about new guidelines for setting up export points for oil products as Nigeria’s refining capabilities grow.

The NMDPRA is set to engage key institutions, such as Customs, the Central Bank of Nigeria, the Federal Ministry of Industry, Trade and Investment, and the Nigerian Navy, to ensure that upcoming guidelines accurately reflect operational realities before their implementation.

There are plans for several field operations and strategic partnerships with the Customs leadership, including the anticipated joint launch of Operation Whirlwind in Yola. Both agencies are expected to strengthen their commitment to curbing diversion and enhancing the security of the domestic supply chain. He said that the enforcement had played a major role in diminishing irregular movements of petroleum products; the upcoming removal of fuel subsidy is anticipated to further reduce the economic incentives driving cross-border smuggling.

The NMDPRA (Nigerian Midstream and Downstream Petroleum Regulatory Authority) is committed to working closely with the Customs Service to ensure that petroleum exports are properly managed. This partnership aims to protect the country from energy security issues.

In recent years, Nigeria has faced significant problems with the illegal diversion and smuggling of cheap petrol to neighboring countries, resulting in losses worth billions of naira every year.

With the removal of fuel subsidies and the growth of local oil refining—mostly due to the emergence of private refineries—regulators are now focusing on balancing the need for exports while also ensuring enough fuel is available for local use. To achieve this, both Customs and the NMDPRA emphasize the importance of better coordination and clearer guidelines at Nigeria’s borders.