The suspension of Nigeria’s 15% fuel import duty has reignited debate over the future of domestic refining. The Centre for the Promotion of Private Enterprise (CPPE) has called for immediate reinstatement, warning that its removal undermines investor confidence and jeopardises long-term energy security.
In a statement signed by its CEO, Muda Yusuf, the CPPE said, “Reinstatement is essential to restoring competitive balance and safeguarding domestic refining investments.” The group specifically cited the Dangote Refinery and emerging modular refineries as national assets whose protection aligns with Nigeria’s economic strategy.
Last week, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced the suspension of the 15% ad-valorem import duty on Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO). The regulator cited sufficient fuel supply nationwide despite heightened seasonal demand. President Bola Tinubu had approved the duty on October 21, directing the Federal Inland Revenue Service and NMDPRA to implement it. Oil marketers had warned that the levy could raise petroleum prices.
CPPE’s concerns focus on the long-term implications for local refining. The organisation argues that without protective tariffs, imported products dominate the market, placing domestic refiners at a disadvantage. “Protecting domestic refining capacity is an urgent national imperative,” the statement said. “Reinstating protective measures, supporting local refiners, ensuring policy predictability, and regulating import volumes are essential steps toward securing Nigeria’s industrial future.”
In a related development, Dangote Petroleum Refinery, Nigeria’s largest, clarified that the recent reduction in pump prices, from N877 to N828 per litre for PMS at the gantry, was a result of its internal pricing decision on November 6, not the tariff suspension. “The recent reduction in PMS pump prices by oil marketers was a direct response to our price cut. It was not caused by the temporary reversal of the 15% import tariff,” the refinery said. Dangote emphasised its commitment to supplying high-quality, competitively priced fuel and supporting domestic refining.
Industry reactions remain mixed. While CPPE and Dangote advocate for tariffs to protect domestic production, some practitioners welcome the suspension as a measure to ease consumer fuel costs.
Read also: Marketers decry Dangote Refinery’s sudden fuel price cuts, fear sector collapse
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