In recent times, there has been a significant upheaval on the roadsides of West African nations due to the sudden doubling of prices for cheap smuggled petrol from Nigeria. This has disrupted an informal sector that plays a crucial role in the economic activity of the region.
Since Nigeria abolished its state fuel subsidy on May 31, the businesses of black market fuel vendors and commercial drivers in Cameroon, Benin, and Togo, who heavily relied on smuggled petrol from Nigeria, have collapsed. As the supplies dwindle, queues have formed at official petrol stations where fuel is now competitively priced.
In Garoua, a town in northwest Cameroon located about 60 km (37 miles) east of the Nigerian border, black market petrol used to sell for around 300 CFA francs ($0.48) per liter. Now, vendors state that the minimum price is 600 CFA francs. This steep increase has led to customers perceiving vendors as overcharging them, despite the fact that it is the soaring prices in Nigeria that have caused the surge.
The repercussions are felt among motorcycle-taxi operators, a prevalent form of public transport in West Africa. Conflict arises between riders, who often live from hand to mouth, and customers who demand cheap fares regardless of the circumstances.
Ousmanou Mal Djoulde, a rider in Garoua, expressed that he was compelled to more than double his fares due to the circumstances. Unfortunately, many customers were refusing to pay, resulting in agonizingly slow business.
The trade in black market fuel holds such prominence in the local economy that authorities often turn a blind eye or are complicit. During an observation by a Reuters reporter in Garoua, a Cameroonian customs officer was seen sitting on a motorcycle-taxi being refueled with smuggled Nigerian petrol.
SMUGGLING ON A LARGE SCALE
Reliable data regarding the quantity of fuel smuggled from Nigeria is unavailable. The head of Nigeria's state-controlled oil firm NNPC, the sole supplier, stated earlier this month that 66 million liters of petrol left its depots daily. However, he could not determine the amount consumed locally, although he acknowledged that smuggling was widespread.
Independent energy experts and Nigeria's Dangote Petroleum Refinery, which expects to begin producing petrol in early August to alleviate persistent fuel shortages, estimate Nigeria's total daily consumption to be below 40 million liters.
In neighboring nations Benin and Togo, both smaller countries to the west of Nigeria, vendors of contraband fuel have experienced a loss of supplies and customers. Meanwhile, previously quiet official petrol stations have suddenly become busy.
At the Hilacondji border crossing between Togo and Benin, several black market fuel stalls were closed, while vendors at other stalls waited with empty plastic jerricans, hopeful for potential deliveries.
Ayi Hilla, who had been earning a living from selling contraband fuel for a decade, shared that some individuals had turned to fishing or other small businesses while waiting for the situation to improve. Hilla himself had shifted his focus to running a small roadside bar.
Informal fuel depots were being demolished, leaving the men who previously worked there unloading and carrying petrol unemployed.
According to the United Nations, over 80% of employment in Africa is informal, highlighting the significant role the informal sector plays in driving economic activity.
In Cotonou, the commercial capital of Benin located approximately 60 km from Nigeria, queues have been forming at official petrol stations. Some stations have struggled to meet the sudden increase in demand, particularly from "zemidjan," the local term for motorcycle-taxis.
"We used to sell around 2,000 liters per day, but now we're selling up to 7,000 liters per day," shared Janvier, a worker at the JNP fuel station. He had recently turned away four customers due to depleted supplies.
"The zemidjan riders are even fighting to be served," added Janvier.
(Note: The conversion rate mentioned is $1 =
626.4400 CFA francs)
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