Nigeria Reverses Planned 15% Fuel Import Duty Amid Supply and
market Concerns
Nigeria has abandoned plans to introduce a 15 percent import duty on petrol and diesel, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced on Thursday, citing confidence in maintaining stable fuel supplies through the upcoming holiday season.
The proposed tariff, which had received presidential approval from Bola Ahmed Tinubu as part of broader fiscal reforms to boost non-oil revenue, was originally expected to take effect in December. Its existence came to light last month following the leak of an internal government memo, sparking public debate and concern within the energy sector.
In a statement, the NMDPRA confirmed that the measure had been shelved:
> “The implementation of the 15 percent ad-valorem import duty on imported premium motor spirit (PMS) and automotive gas oil (AGO) is no longer in view.”
Fuel marketers and industry stakeholders had strongly opposed the planned levy, warning that it could deter fuel imports, distort market competition, and increase Nigeria’s dependence on the Dangote Petroleum Refinery, which began limited operations last year. Despite the refinery’s potential capacity of 650,000 barrels per day, Africa’s largest oil producer continues to rely heavily on costly fuel imports to meet domestic demand.
The NMDPRA moved to reassure consumers that fuel availability will remain stable throughout the festive period, urging the public to avoid panic buying or hoarding.
Analysts say the government’s reversal reflects a balancing act between fiscal policy and public stability, as Nigeria grapples with inflation, currency pressure, and widespread concern over rising energy costs
