Business
Benin feels pinch as Nigeria ends fuel subsidy
Sitting on top of a yellow jerry can of fuel, Jeannine waits for customers on a sidewalk in Benin’s economic capital Cotonou, but business is slow. The motorbikes and cars she normally supplies are no longer stopping to stock up on her cheap gasoline, which is smuggled in from neighbouring Nigeria.
Since Nigeria’s new president Bola Ahmed Tinubu abruptly ended his country’s long-standing subsidy on petrol two weeks ago, prices of black market fuel over the border in Benin have also doubled.”Since this morning, barely five people have stopped,”

said Jeanine. “Everyone prefers to go tothe petrol station now.”Two weeks ago, a litre of “Kpayo,” the smuggled gasoline sold on the side of Beninese roads, doubled from 350 to 700 CFA francs (0.5 to 1 euro). That is now higher than the petrol in service stations at the market price of around 650 CFA a litre.In Nigeria, fuel prices have also tripled since Tinubu ended the subsidies, with food, transport and power prices feeling the knock-on effect.Ending the subsidy was the first measure taken by Tinubu, who sees the subsidies as unsustainable financial waste costing the state billions of dollars a year, and allowing massive smuggling of subsidised gasoline to neighbouring countries.
“Why should we (…) feed the smugglers and be the Santa Claus of neighbouring countries,” Tinubu said last week, justifying the decision, which has been unpopular in Nigeria.
For decades, Nigeria’s low-cost gasoline has been transported illegally by road to its neighbours, primarily Benin, where it is resold on the black market by a multitude of informal sellers.
“You know, this fuel helps feed thousands of people in Benin,” said Jeannine, a 48-year-old widow with five children, who says she does not have savings “to start a new business.”
The scale of the trafficking is such that the price of taxi fares has almost doubled in Cotonou. In Cameroon, another neighbour of Nigeria, several motorcycle taxi unions have gone on strike in protest.
‘Pray to God’
Victorien Assogba Kossi, wearing a yellow shirt like all the zemidjans (motorbike taxis) of Cotonou, wonders “what is wrong with Nigeria…?”
“Is it because the border is closed?” asks the driver who has never heard of Nigerian subsidies.
“We’re going to pray to God that it goes down,” said the 46-year-old man, who says he was forced to cut corn rations for his children when business slowed.
A few kilometres away, Nicolas Evedjere is happy enough. The gas station manager has never sold as much as in recent days.
“We had to close this morning, because we had nothing left to sell, our clients have multiplied by ten,” he said smiling while adding he is sad “to see brothers suffer.”
Suppliers had not anticipated such an explosion in demand, he said.
In front of gas stations that still have fuel to sell, long queues are now visible at peak times.
This is good news for the Beninese State, which hopes to increase its tax revenue, as informal sellers do not pay tax.
“In recent years, the Beninese government has encouraged the development of service stations in the country to reduce the importance of contraband gasoline on the market,” Beninese government spokesman Wilfried Houngbedji told AFP.
“If we hadn’t done this, we would currently be facing serious shortages,” he said.
Border Closure
The subsidy episode has once again illustrated Benin’s steep dependence on its Nigerian neighbour, a West African giant with 215 million inhabitants, the continent’s largest economy and one of Africa’s top oil producers.
Nigeria’s border with Benin was closed off overnight in 2019 by former Nigerian President Muhammadu Buhari, a shutdown which lasted 18 months and asphyxiated the Beninese economy.
Whether coincidence or not, Beninese President Patrice Talon recently dismissed his foreign affairs minister, replacing him with Shegun Bakari, a Beninese entrepreneur who is of the same Yoruba ethnicity as Tinubu, and who observers say is “close” to his inner circle.
At the Benin border post of Seme-Krake, on the Atlantic coast, the usual hustle of currency traders, sellers, transporters and small traders involved in gasoline trafficking may have slowed, but another activity persists.
Rice imports are officially banned in Nigeria, which is trying to encourage local production.
But on the Nigerian side, past the customs checkpoints, a multitude of cars, their trunks filled with bags of rice arriving from the port of Cotonou in Benin, are unloaded in plain sight and passed into new vehicles for transport into Nigeria
Business
Trade Fair Board Backs NAFDAC Crackdown
The Lagos International Trade Fair Complex Management Board (LITFCMB) has condemned the use of its facility for the production of counterfeit products and other illegal activities, pledging to work with regulatory and law enforcement agencies to rid the complex of such practice
The board also commended the National Agency for Food and Drug Administration and Control (NAFDAC) for its recent enforcement operation, which led to the arrest of two persons allegedly linked to the illegal revalidation of expired drinks and the production of counterfeit consumables within the complex.
In a statement issued on Wednesday, the Executive Director and Chief Executive Officer of LITFCMB, Veronica Safiya Ndanusa, said the activities were contrary to the board’s commitment to promoting legitimate trade and ethical business practices.
She disclosed that relevant authorities had commenced investigations to establish the facts surrounding the incident and identify measures to prevent a recurrence.
Ndanusa warned that individuals and businesses found culpable of engaging in activities that endanger public health or undermine the integrity of local manufacturing would face the full weight of the law.
“As a body rooted in the principles of ethical business practices, transparency and genuine trade, we strongly condemn any activity that threatens public safety or brings the reputation of the Lagos International Trade Fair Complex Management Board into disrepute,” she said.
“Our facility exists to provide a conducive environment for legitimate businesses to thrive, not to serve as a breeding ground for the production or distribution of counterfeit and substandard products.”
The board chief assured members of the public that the management would collaborate with relevant regulatory and law enforcement agencies to ensure that the complex remained free of illegal activities.
She also urged traders and business operators within the facility to comply with established standards, stressing that the pursuit of profit must never come at the expense of consumers’ health and safety.
Business
Not The Right Time To Impose New Taxes , Oyedele Warns Governments
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has cautioned governments against introducing new taxes or increasing existing tax burdens on vulnerable citizens and productive sectors, warning that such measures could deepen economic hardship.
Oyedele spoke on the sidelines of the 2026 annual meetings of the International Monetary Fund (IMF) and World Bank in Bangkok, Thailand, where he presented a communiqué on behalf of the Intergovernmental Group of Twenty-Four (G24), which he chairs.
“This is the wrong time to impose new taxes or increase the burden of tax, particularly on the vulnerable population and productive sectors of the economy,” he said.
Responding to questions on how developing countries could reduce debt-servicing costs without cutting essential public spending,report quoted Oyedele as urging governments to identify waste, find savings and improve revenue collection before placing additional financial pressure on citizens and businesses.
He said borrowing remained necessary to finance economic growth but stressed that governments must ensure that debt supports job creation and inclusive development.
“Borrowing and debt financing is a necessary condition for growth, and every country emerging, developing must be able to apply debt financing in a way that is overall of positive impact, particularly to stimulate job-rich and inclusive growth,” he said.
The minister also called for available public funds to be prioritised for essential services, including healthcare and education, while private capital could help finance other areas of investment.
On the choice between taxation and borrowing, Oyedele said both options carried consequences and should be considered in the context of their impact on household welfare.
“If you collect taxes, you raise the money now, and that itself has a lot of trade-offs. What taxes are you collecting? You collect taxes from the most vulnerable, and this will deprive them of money to provide food, health, education,” he said.
He argued that excessive taxation could leave low-income households with less money for basic needs, while borrowing also carried future obligations.
“Debt is future taxes, so it’s not one or the other. It’s to strike a balance, bearing in mind ultimately that the essence of tax and of debts is to cater for the people,” Oyedele said.in the report.
Business
Fayemi Explains Why America Must Have Nigeria As Partner
Former Governor of Ekiti State and ex-Minister of Mines and Steel Development, Dr Kayode Fayemi, has warned the United States against slipping into isolationism in its engagement with Africa, insisting that Nigeria remains a must-have strategic partner in the evolving global order.
Fayemi maintained this position in Lagos while speaking as a panelist at the Nigeria Moment, a Nigeria–United States Strategic Dialogue organised by the American Business Council in collaboration with the Heritage Foundation.
In his presentation, which focused on why Nigeria is a must-have partner in the changing world order, Fayemi,former chairman of the Nigeria Governors’ Forum (NGF) stressed the need for a more holistic relationship between both countries grounded in transparency, mutual benefit and shared prosperity.
He insisted that Nigeria must be treated as a strategic partner in the emerging world order.
“While welcoming the growing American interest in Nigeria’s vast mineral endowment, Fayemi warned that the partnership must go beyond resource extraction.
“Nigeria must be engaged as a strategic actor and a co-creator in shaping the future of global energy and resource governance, rather than as a testing ground for experiments. A partnership built on mutual respect, shared interests and long-term cooperation offers the strongest foundation for an enduring relationship between Nigeria and the United States,” Fayemi said.
Describing the engagement as a pleasure, Fayemi said the dialogue brought together a distinguished group of policymakers, business leaders and strategic thinkers to reflect on the future of Nigeria-US relations.
He commended the convener of the dialogue, Mr Ayo Otuyalo,for an excellent convening and for bringing together such high-level participants for the important strategic conversation.
The conference featured Governor Babajide Sanwo-Olu of Lagos State as keynote speaker, alongside senior representatives of the Federal Government, including the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole; Minister of Power,
Also st the event were : Engr Joseph Tegbe; Minister of Solid Minerals Development, Mr Dele Alake, represented by Engr Simon Nkom; and the Head of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mrs Oritsemeyinwa Eyesan among others.
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