Nigeria Scraps 15% Fuel Import Duty

Nigeria has cancelled plans to impose a 15% import duty on petrol and diesel to ensure stable fuel supply during the festive season after opposition from marketers warning of market distortion.

Nigeria has scrapped its plan to impose a 15% import duty on petrol and diesel, following assurances of sufficient fuel supply during the upcoming festive season. The decision, announced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Thursday, marks a reversal of a policy initially approved by President Bola Tinubu to boost non-oil revenue.

The proposed tariff had sparked strong opposition from fuel marketers, who warned that it could distort the market and create excessive reliance on the Dangote Refinery — the country’s major domestic producer. Despite Nigeria’s ongoing efforts to expand local refining capacity, the nation still imports millions of dollars’ worth of refined petroleum products each year to meet demand.

In a statement, the NMDPRA assured citizens that there is no cause for concern, urging consumers to avoid panic buying and promising that regulatory teams would closely monitor supply and distribution nationwide.

The authority emphasised that maintaining market stability and ensuring product availability remain the government’s top priorities as the year-end travel and festive period approach.

Analysts say the policy reversal reflects a pragmatic economic approach, balancing fiscal ambition with consumer realities amid fluctuating global oil prices and domestic cost-of-living pressures.