The Federal Government has reversed its earlier decision to introduce a 15% import duty on Premium Motor Spirit (PMS) and diesel, following public pushback and industry concerns.
The announcement was made on Thursday by George Ene-Ita, Director of Public Affairs at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). According to him, the proposed tariff is no longer being considered.
Ene-Ita also reassured Nigerians that fuel supply remains stable nationwide, noting that the country currently maintains sufficient stock levels during this period of high demand. He emphasized that both imported products and output from local refineries are contributing to a healthy supply chain.
The Authority urged marketers to avoid hoarding or inflating prices, stressing that regulators are monitoring market activities to prevent disruptions in the distribution network. The statement further reaffirmed NMDPRA’s commitment to safeguarding energy availability across the country.
The suspended import duty was initially approved on October 30 after the Federal Inland Revenue Service (FIRS) recommended the policy. It was intended to harmonise import costs with domestic market conditions and boost the competitiveness of local refiners.
Reports suggested that the duty could have added close to ₦1 trillion to Nigeria’s annual fuel import expenses. Government officials, however, argued that the measure was designed to support the growth of the refining sector rather than to generate additional revenue.
Under the now-halted plan, payments would have been directed to a dedicated Federal Government account managed by the FIRS, with NMDPRA responsible for ensuring compliance. Authorities had also instructed that future import licences give preference to fuel sourced from within Nigeria before foreign supplies are approved.
Industry analysts and stakeholders had voiced concerns, warning that Nigeria’s current refining capacity is insufficient to sustain such a policy and could lead to price hikes or shortages. Some experts projected that petrol prices might cross the ₦1,000-per-litre mark if the tariff were implemented alongside currency fluctuations or rising global shipping costs.
