FG drops plan to impose 15% duty on imported fuel amid inflation fears
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced that the federal government will no longer proceed with the proposed 15 per cent import duty on petrol and diesel.
The policy, initially approved by President Bola Tinubu on October 29, was expected to come into effect on November 21, 2025, and aimed to make imported fuel more expensive to protect local refineries such as the Dangote Refinery and other modular plants.
According to a statement issued on Thursday by George Ene-Ita, Director of Public Affairs at the NMDPRA, the plan has been shelved, and Nigerians are advised to avoid panic buying or hoarding.
“It should also be noted that the implementation of the 15% ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view,” the statement clarified.
The initial proposal, submitted by Federal Inland Revenue Service (FIRS) boss Zacch Adedeji, sought to align import costs with domestic market realities by imposing a tariff on the cost, insurance, and freight value of imported petroleum products. The plan, however, drew public concern over the potential rise in fuel prices, inflation, and transport costs, with experts warning that pump prices could soar by as much as ₦150 per litre.
While the policy was designed to encourage local refining and reduce dependence on imports, many feared it would worsen living conditions already strained by the removal of fuel subsidies and the naira’s depreciation.
Reassuring Nigerians, the NMDPRA said there was no cause for alarm over supply, insisting that the country currently maintains “adequate national sufficiency” of petrol, diesel, and cooking gas.
“There is a robust domestic supply of petroleum products sourced from both local refineries and importation to ensure timely replenishment of stocks at depots and retail stations,” Ene-Ita said.
The Authority urged marketers to desist from hoarding or inflating prices, warning that regulatory measures will be enforced to ensure uninterrupted supply across the country, particularly during the peak demand season.
NMDPRA reiterated its commitment to safeguarding Nigeria’s energy security and ensuring a steady flow of petroleum products nationwide.