Fuel Subsidy Removal: Black Market Blacks Out In Benin Republic, Togo, Niger, Cameroun, Chad

Following the annucement by President Bola Ahmed Tinubu that the era of subsidy for Nigeria Premium Motor Spirit, also known as petrol, is gone, black markets in neighbouring countries, including Niger, Chad, Benin Republic and Cameroun, have colapsed.

Reuters report also say that trade in official petrol outlets is booming as supply to the black market operators has dried up.

Acvording to the report, price of the product has more than doubled, causing hardship to transporters and commuters alike.

In Garoua, Cameroun, price of cheap raodside petrol, which forced official petrol outlets out of business, doubled following the subsidy removal announcement. The development is forcing black market operators out of business and into other ventures. 

In particular, taxis and commercial motor bike operators who hitherto rely on black market supplies from Nigeria, have been forced out of business while official petrol stations are now the sight of unusual queues even as they operate with competitive price that is as high as over 200%. 

For instance, a litre of petrol, which used to sell at abou 300 CFA now sells for a minimum of 600 CFA.

“Supply has become scarce and customers think we’re ripping them off with this high price, yet it’s from Nigeria,” Perevet Dieudonne, a black market operator, told Reuters.

The situation is not different in the Benin Republic or nearby Togo where blackmarket vendors have been forced out of business haven lost their sources of supply.

Whereas black market spots in Hilacondji, a border crossing town between Togo and Benin Republic have been shut following the end of subsidy in Nigeria, official outlets in the town are booming even as some black market vendors are still hopefully waiting for supplies from Nigeria just as some of them have abandoned the trade and moved on to other businesses.

“While we wait for the situation to improve, some have gone into fishing or other small businesses,” a former black market vendor said.

Further investigations revealed that some of the black market depots have been demolished.

Cotonou has since become the centre of unusual queues in official petrol outlets. Reports say they are actually struggling to meet daily demands. 

Petrol attendant who volunteered information to Reuters, pointed out that patronage has doubled so much that from selling about 2,000 litres per day, they now make a daily average sale of 7,000 litres, with many buyers being turned away brcause of product shortage.

“Before, we were selling about 2,000 litres per day but now we’re selling up to 7,000 litres per day,” he told Reuters.