NMDPRA: The Federal Government has postponed the implementation of the controversial 15 per cent import duty on petrol and diesel to the first quarter of 2026, dispelling earlier claims that the suspension was indefinite. The decision, which has now been officially approved by President Bola Tinubu, followed weeks of intense consultations and a formal request by the Executive Chairman of the Federal Inland Revenue Service, Dr Zacch Adedeji.
Documents obtained by The PUNCH revealed that Adedeji wrote to the President on November 7, 2025, urging a deferment of the duty to allow for market readiness, alignment of technical frameworks, and the avoidance of potential fuel supply disruptions. In the letter titled “Deferment of the Commencement of the Implementation of the Premium Motor Spirit (Petrol) and Diesel Import Duty,” Adedeji stressed the need to ensure that local refining infrastructure and operational systems were sufficiently prepared before the tariff takes effect.
The duty, originally approved on October 21, 2025, was part of the government’s broader fiscal and energy reforms intended to strengthen local refining, stabilise downstream prices, and create competitive balance between imported and locally produced fuels. But heightened concerns from industry players, marketers, and economists prompted fresh consultations within government, ultimately leading to a postponement rather than a full suspension.
Earlier on Thursday, the Nigerian Midstream and Downstream Petroleum Regulatory Authority announced that the 15 per cent tariff had been suspended. Its Director of Public Affairs, George Ene-Ita, confirmed via telephone that the levy was “no longer in view” for immediate implementation and had received full presidential approval. A subsequent memo sighted by The PUNCH, however, clarified that President Tinubu opted for a deferment, not a cancellation, directing that the policy undergo further review in early 2026.
In his memo to the President, Adedeji stated that multiple stakeholder engagements revealed the need for additional time to refine technical templates, streamline import scheduling, and prepare public communication frameworks. According to him, this would help minimise supply chain disruptions and ensure that when the tariff is eventually activated, it will be economically sustainable and socially responsible. The FIRS chairman also argued that the delay would allow government agencies monitor the performance of local refineries in the first quarter of 2026 and align fiscal measures with verified production data and consumer price indicators.
Adedeji recommended a new commencement date of January 2026 pending final confirmation, but Tinubu, in his minute on the document, approved a broader window—ordering that the import duty be deferred for further review in the first quarter of 2026.
The President had last month approved the 15 per cent duty as part of a new tariff framework for petroleum products to promote local refining and generate revenue. That approval, conveyed through his Private Secretary, Damilotun Aderemi, drew widespread concern across the oil and gas sector. Operators warned that the duty could push petrol prices higher, worsen inflation, raise import costs, and strain consumers already dealing with economic hardship. The Federal Government, however, maintained that the policy was essential to strengthening Nigeria’s naira-based oil economy and encouraging investment in local refining.
But with the latest decision, the administration appears to be taking a more cautious route, balancing consumer protection with its long-term goal of achieving energy self-sufficiency.
Oil marketers and industry experts have reacted positively to the development, describing it as a timely intervention that shields Nigerians from potential price shocks. The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, said the move showed that the Federal Government was paying attention to feedback and economic realities. He recalled warning earlier that PETROAN could not issue a final position until a test run was conducted to determine the tariff’s impact.
Gillis-Harry said while import duties are essential for balancing the market, imposing a 15 per cent levy during a fragile economic recovery would have been excessive. He praised the administration for demonstrating sensitivity and responsiveness to market conditions.
Similarly, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, commended the President for suspending the tariff, saying it would have fuelled inflation and destabilised the market. An oil and gas analyst, Olatide Jeremiah, described the policy adjustment as rational and necessary, noting that the tariff was “outrageous and ill-timed,” especially since Nigeria still lacks sufficient refining capacity to meet its domestic fuel needs.
A top oil marketer who spoke anonymously said the reversal stemmed from intense pushback within the industry and concerns over the political and economic implications of higher pump prices. According to him, global VAT rates on fuel average around 2 per cent, and government’s 15 per cent proposal appeared too steep and likely driven by an attempt to boost revenue and protect emerging local refineries.
Meanwhile, the NMDPRA has assured Nigerians of adequate fuel supply during the peak demand season. In a statement titled “NMDPRA Advises Against Panic Buying of Any Petroleum Product,” the Authority cautioned against hoarding, panic buying, and arbitrary price increases, insisting that domestic supply of petrol, diesel, and cooking gas remains robust through a mix of local production and imports
