The Federal Government, under President Bola Ahmed Tinubu, has suspended the proposed 15% import duty on Premium Motor Spirit (PMS), commonly known as petrol, and diesel.
This was announced in a statement on Thursday by George Ene-Ita, Director of the Public Affairs Department of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Ene-Ita said, “It should also be noted that the implementation of the 15 per cent ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view.”
NMDPRA assured the public that the nation has sufficient petroleum product supplies within acceptable national sufficiency levels during this period of high demand.
“There is a 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.
“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 Authority will continue to closely monitor the supply situation and take appropriate regulatory measures to prevent disruption of supply and distribution of petroleum products across the country, especially during this peak demand period.
“While appreciating the continued efforts of all stakeholders in the midstream and downstream value chain in ensuring a smooth and uninterrupted supply and distribution, the public is hereby assured of NMDPRA’s commitment to guarantee energy security,” the statement read.
On October 30, reports indicated that President Tinubu had approved a 15% import duty on petrol and diesel following a proposal from the Federal Inland Revenue Service (FIRS).
The tariff was aimed at aligning import costs with domestic realities and encouraging local refining. According to reports, it could have added nearly ₦1 trillion annually to Nigeria’s petrol import bill.
The presidency maintained that the duty was meant to stabilise prices, discourage duty-free imports that undercut local refiners, and promote investment in domestic refining.
Under the plan, payments were to be made into a dedicated Federal Government account managed by the FIRS, while NMDPRA oversaw compliance. Import licences were to prioritise local refining before any foreign supply approvals, with Customs and NMDPRA instructed to update digital verification systems for all shipments.
While the government emphasized that the measure aimed at achieving self-sufficiency rather than raising revenue, experts argued that Nigeria’s limited refining capacity could make the policy unsustainable. Analysts warned that fuel prices might exceed ₦1,000 per litre if the duty were implemented amid currency depreciation or rising global freight costs.
