Nigerian government makes shocking U-turn on 15% fuel import tariff after much push back

The move was disclosed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in a statement that was posted on its X account on Thursday and signed by George Ene-Ita, Director of the Public Affairs Department.

The initiative, initially designed to disincentivize fuel importation and stimulate domestic production, was put on hold by the government after the NMDPRA provided assurances regarding the sufficient supply of fuel to mitigate panic purchasing.

“There is robust domestic supply of petroleum products (AGO, PMS, LPG, etc) sourced from both local refineries and importation to ensure timely replenishment of stocks at storage depots and retail stations during this period,” NMDPRA issued via its statement.

“The Authority wishes to use this opportunity to advise against any hoarding, panic buying, or non-market reflective escalation of prices of petroleum products,” the statement added.

The statement then went on to disclose that the 15% tariff on fuel imports was no longer in view.’

“The implementation of the 15% ad-valorem import duty on imported premium motor spirit and diesel is no longer in view,” the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said in a statement.

According to a presidential memo issued last month, the West African country‘s government, with the approval of its president, Bola Tinubu, imposed a 15% import charge on fuel and diesel.

According to the administration, the decision was part of broader economic reforms aimed at increasing non-oil income ahead of scheduled tax adjustments in 2026.

However, shortly after the announcement, fuel merchants began pushing back, arguing that it would restrict imports and leave the country reliant on a single source, the Lagos-based Dangote Petroleum Refinery, which produces 650,000 barrels per day.

Africa’s largest oil producer spends millions of dollars per year on fuel imports, which has continued even before the Dangote Petroleum Refinery began processing crude last year.

“The Authority will continue to monitor supply and take necessary steps to avoid disruptions, especially during this peak demand period,” it said.