Amanze Chinonye
The Federal Government has suspended the planned 15 per cent import duty on Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), popularly known as petrol and diesel, stepping back from a policy that was expected to raise the landing cost of imported fuel and potentially trigger nationwide price increases.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) confirmed the suspension in a statement issued by its Director of Public Affairs, George Ene-Ita. He said the decision was taken to stabilise domestic supply and prevent “unnecessary price escalation” in the downstream sector.
“It should be noted that the implementation of the 15 per cent ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view,” Ene-Ita stated, assuring Nigerians that current stock levels sourced from both local refineries and importers are sufficient to prevent scarcity, panic buying or price hikes, Prime Business Africa Reports.
Join our WhatsApp ChannelThe tariff, approved by President Tinubu on October 29, 2025, followed a proposal submitted by the Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji.
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The levy was designed to align import costs with domestic production realities and encourage investment in Nigeria’s growing refining sector, including the Dangote Refinery and modular refinery projects. Implementation was scheduled for November 21 after a 30-day transition window.
Although the measure was intended to protect local refiners by making imported fuel more expensive, analysts warned it would likely raise pump prices and intensify inflation. Some experts projected a possible increase of up to ₦150 per litre, given the expected rise in landing costs.
The suspension has attracted criticism from industry stakeholders. The Ogun State Chamber of Commerce, Industry, Mines and Agriculture (OGUNCCIMA) described the reversal as a setback for economic reforms and a blow to investor confidence.
OGUNCCIMA President, Lion Niyi Oshiyemi, said the tariff was a necessary tool to promote local production, conserve foreign exchange and strengthen Nigeria’s long-term energy security.
“Its reversal sends the wrong signal to investors who have shown confidence in Nigeria’s energy sector,” he said, stressing that consistent policy direction is essential for sustaining industrial growth and boosting the naira.
While acknowledging government concerns about short-term price pressures, Oshiyemi insisted that the long-term benefits including job creation, forex savings and increased energy security outweigh any temporary inconvenience the tariff might have caused.
Meanwhile, the NMDPRA has urged against hoarding or speculative pricing, assuring that Nigeria remains within its national sufficiency threshold for PMS, diesel and LPG. The agency said it will continue to monitor supply and distribution channels, particularly during the current peak demand period, to prevent disruptions.
Although the import duty has been suspended, the government has not indicated whether the measure will be reviewed, deferred or discarded entirely.
Analysts say the development underscores the administration’s challenge of balancing downstream reforms with the need to maintain short-term price and supply stability.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
