Nigeria has abandoned its plan to introduce a 15% tariff on imported fuel, reversing a major policy decision that had sparked widespread criticism across the downstream sector.
The suspension was announced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in a statement posted on its X account yesterday and signed by its Director of Public Affairs, George Ene-Ita.
The tariff, approved last month by President Bola Tinubu, was originally designed to discourage fuel importation and boost local refining.
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But the government has now stepped back from the policy after the NMDPRA assured that the country has more than enough supply from both domestic refineries and imports to prevent scarcity or panic buying.
“There is robust domestic supply of petroleum products sourced from both local refineries and importation,” the agency said, urging marketers to avoid hoarding, panic buying, or arbitrary price increases. It added that the implementation of the 15% duty on imported petrol and diesel “is no longer in view.”
Fuel marketers had strongly opposed the tariff, warning that it would restrict imports and leave Nigeria overly dependent on a single supplier — the 650,000-barrel-per-day Dangote Petroleum Refinery in Lagos. Despite being Africa’s top crude producer, Nigeria still spends millions of dollars annually on fuel imports.
The government had framed the tariff as part of broader economic reforms aimed at boosting non-oil revenue ahead of planned tax adjustments in 2026. But the pushback from industry players appears to have forced a reconsideration.
The NMDPRA said it will continue monitoring the market to ensure steady supply, especially during the current peak demand period.
