The Federal Government (FG), through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has suspended the implementation of the 15 percent ad-valorem import duty on imported Premium Motor Spirit (PMS) and diesel.
The Authority stated this in a statement signed by George Ene-lta, Director, Public Affairs Department.
President Bola Ahmed Tinubu had approved a 15 percent import policy on PMS and diesel in October 2025.
This development stirred widespread concern across the oil and gas sector, with operators warning it could raise petrol prices, worsen inflation, and increase import costs, even as the government insists the policy aims to boost local refining and generate revenue.
The President’s approval was conveyed in a letter signed by his Private Secretary, Damilotun Aderemi, following a proposal submitted by the Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji.
The proposal sought the application of a 15 per cent duty on the cost, insurance, and freight value of imported petrol and diesel to align import costs with domestic market realities.
Adedeji, in his memo to the President, explained that the measure formed part of ongoing fiscal and energy reforms designed to strengthen the naira-based oil economy, ensure price stability, and accelerate the nation’s transition toward local refining capacity in line with the administration’s Renewed Hope Agenda for energy security and economic sustainability.
The duty, introduced as part of the Federal Government’s new tariff framework for petroleum products, was meant to support emerging local refineries such as the Dangote Petroleum Refinery and modular plants.
The directive was met with mixed reactions, as stakeholders expressed concerns that the new tax could worsen inflation and push up pump prices at a time when Nigeria’s domestic refineries are yet to attain full operational capacity.
However, Ene-Ita in the statement on Thursday said that the implementation of the 15 percent ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view.
He assured that there is adequate supply of petroleum products in the country, within the acceptable national sufficiency threshold during this peak demand period.
“There is 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.
“It should also be noted that the implementation of the 15 percent ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view.
“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,” he said.
(Agency Report)
