Fed Govt shelves proposed 15% levy on fuel, diesel imports

• Suspension a setback to Nigeria’s economic reform, says OGUNCCIMA

By Grace Edet

The Nigerian Midstream and Downstream Petroleum Regulatory Authority has stated that the proposed implementation of the 15 per cent of valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view.
According to a statement posted on its X handle earlier today, the Director, Public Affairs Department, NMDPRA, George Ene-Ita, while assuring of adequate supply of products by the Authority, said: “It should also 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.”
The statement said the Authority will continue to closely monitor the supply situation and take appropriate regulatory measures to prevent distruption of supply and distribution of petroleum products across the country, especially during this peak demand period.
But reacting to the decision, the Ogun State Chamber of Commerce, Industry, Mines and Agriculture (OGUNCCIMA) faulted the Federal Government’s decision to suspend the proposed implementation of the 15 per cent import duty on petrol and diesel imports. It insisted that the rescinding of the policy could slow down the nation’s progress toward energy independence and weaken investor confidence in the refining sector.
OGUNCCIMA’s President, Niyi Oshiyemi, described the suspension as a setback to Nigeria’s economic reform drive and a missed opportunity to protect local refiners, particularly the Dangote Refinery and other modular refining initiatives.
“The suspension of the 15 per cent fuel import tariff is disappointing. The policy was a step in the right direction to promote local refining, reduce dependence on imports, conserve foreign exchange and create a fair competitive environment for domestic producers. Its reversal sends a wrong signal to investors who have shown confidence in Nigeria’s energy sector,” Oshiyemi said, noting that implementing the tariff would have helped to stabilise the naira by curbing excessive demand for foreign exchange used in fuel importation.
He added that local refineries need firm policy backing to thrive, warning that continuous reliance on imported fuel would make the economy vulnerable to external shocks.
“The Dangote Refinery alone has the capacity to meet Nigeria’s domestic fuel needs and even export to other African countries. Supporting such investments with protective policies like the import tariff is not just economic common sense; it is a matter of national interest,” he stated.
The OGUNCCIMA President urged the Federal Government to reconsider its decision and reintroduce the policy after consultations with key stakeholders in the oil and gas industry.
He emphasised that sustainable industrial growth requires consistency in policy direction, noting that frequent policy reversals discourage private sector participation and hinder long-term development.
While acknowledging the government’s concern about potential short-term price increases, Oshiyemi maintained that the long-term gains including job creation, forex savings and increased energy security far outweigh any temporary inconvenience.
He reaffirmed OGUNCCIMA’s commitment to advocating policies that protect local industries and promote economic diversification.
“We believe in reforms that empower Nigerian investors and strengthen our productive base. The 15 per cent tariff was one of such reforms, and we urge the government to revisit it in the national interest,” he said.
Recall that in October, President Bola Tinubu approved the introduction of a 15 per cent ad valorem import duty on petrol and diesel imported into the country.
According to the government, the measure was intended to “strengthen local refining capacity and ensure a stable, affordable supply of petroleum products across Nigeria.”
Authorities had announced that implementation of the tariff would commence within a month of its approval.
However, the decision drew widespread criticism from stakeholders, energy experts and civil society groups, who warned that the levy could trigger a surge in fuel prices and further strain the nation’s fragile economy.