Nigeria Suspends 15% Fuel Import Duty: Marketers Applaud, Experts Warn of Long-Term Risks
The Federal Government’s decision to suspend the 15% import duty on petrol and diesel has sparked a mix of praise and concern across Nigeria’s energy sector. Independent oil marketers welcomed the move, saying it shows that the voices of Nigerians are being heard, while analysts warned that the suspension could undermine domestic refining and long-term energy security.
Independent marketers, who had previously protested against the import duty, argued that the policy would have acted as an indirect form of regulation in a deregulated market. According to the Independent Petroleum Marketers Association of Nigeria (IPMAN), the importation of petroleum products is crucial to preventing monopoly by local refineries and ensuring competitive pricing. “The removal is welcomed because it encourages market forces without interference,” said Chinedu Ukadike, IPMAN’s Publicity Secretary.
However, some experts have expressed concern that the suspension is a short-term fix with long-term implications. Paul Adams, an economics expert at Nasarawa State University, warned that making imported fuel cheaper than locally refined products could discourage investment in domestic refineries and reinforce reliance on foreign suppliers. “This move may actually strengthen the influence of international traders and place domestic refiners at a competitive disadvantage,” he said.
The policy shift follows President Bola Ahmed Tinubu’s initial approval of the 15% ad-valorem import duty in October 2025, aimed at aligning import costs with domestic realities, encouraging local refining, and moderating prices. Nigerians and marketers had voiced concerns that the duty would push pump prices above N1,000 per litre, sparking fears of inflation and reduced access to fuel.
Despite the suspension, the government reassured the public of adequate petroleum supply nationwide and pledged close monitoring of distribution channels to prevent scarcity. Meanwhile, voices like Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), have called for the immediate reinstatement of the duty, warning that its removal could undermine Nigeria’s refining sector, deter investors, and threaten long-term energy security.
source: Nairametrics