Nigeria’s decision to suspend a 15 percent import tax on petrol and diesel has brought widespread relief across its energy sector, easing fears of steeper pump prices but reigniting debate over the nation’s stalled refining ambitions.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Thursday announced the suspension of the ad-valorem import duty, a levy approved by President Bola Tinubu in October 2025 to encourage local refining and reduce dependence on imported fuel.
Energy analysts and industry players have welcomed the rollback, describing it as a necessary lifeline for households and businesses already stretched by inflation and currency pressures. Yet, many warn that the relief could delay critical structural reforms in Africa’s largest oil producer.
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“This is a very good move. Nigerians are already being burdened by high costs, so cancelling it is something we should applaud,” said Henry Adigun, an oil policy expert. “In a country where you don’t have local production sufficiency, imposing a tariff on imports is counterproductive.”
Adigun said the tariff was “flawed from the beginning,” highlighting a policy disconnect between the government’s fiscal drive and the realities of Nigeria’s import-dependent energy market. “Once you get enough local production, then you can put tariffs to discourage others. The logic was premature,” he added.
Efforts to reach major oil marketers for comment were unsuccessful as they declined to respond at the time of filing this report.
The government’s initial rationale for the tax, according to Joseph Tolorunse, director of legal services at the NMDPRA, was to protect emerging local refineries such as the 650,000-barrel-per-day Dangote Refinery and smaller modular plants from being undercut by cheaper imports.
“The government intended to stimulate investment and protect local industries,” Tolorunse said. “In the short run, prices may go up, but in the long run, the country would benefit through job creation, GDP growth, and greater self-sufficiency.”
Tolorunse added that while the administration remains committed to its long-term industrial goals, “it is also sensitive to public outcry,” prompting a temporary pause in the rollout of the policy.
Analysts say the suspension underscores a broader tension between economic reform and political reality. Despite the government’s ambitions to strengthen the naira-based oil economy and achieve domestic refining self-reliance, Nigeria still imports nearly all of its petrol due to delayed refinery operations and infrastructure bottlenecks.
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The NMDPRA has assured consumers of adequate fuel supply and warned against hoarding or speculative price increases, but uncertainty looms over the government’s next move.
“This suspension provides short-term comfort,” said one energy analyst who requested anonymity. “But it doesn’t solve the underlying issue, Nigeria’s dependency on imports and the slow pace of refining reform.”
Analysts said the development serves as a reminder of the delicate balance Nigeria must strike: easing immediate economic pain without derailing the structural reforms needed to secure its energy future.
