In a dramatic policy reversal that has sparked nationwide debate, the Federal Government has suspended the controversial 15 per cent ad-valorem import duty earlier approved on imported Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), following intense pressure from fuel marketers, labour unions, industry experts and political stakeholders.
The tariff, approved by President Bola Ahmed Tinubu in late October as part of a broader revenue drive, was expected to take effect immediately, imposing a 15% levy on the CIF value of every litre of imported petrol and diesel. Analysts projected that the move would add up to ₦99.72 per litre to the pump price of petrol — a devastating increase in a country already grappling with record-high inflation, rising transport costs and deepening economic hardship.
But the backlash was swift. Major fuel importers and depot owners openly warned that implementation of the tariff would cripple the already fragile supply chain. Marketers said the duty would make fuel imports “commercially impossible,” potentially triggering immediate nationwide shortages. Labour groups branded the tariff "anti-poor," accusing the government of attempting to squeeze Nigerians further at a time when many households can barely afford food and transport.
Amid mounting anger, fears of holiday-season scarcity, and quiet warnings from political allies, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) suddenly announced on Thursday that the tariff was “no longer in view.” The regulator assured that Nigeria currently has “adequate national stock levels” and warned against panic buying — a tone that underscored just how close the nation was to another fuel crisis.
Insiders familiar with the matter told reporters that the decision was a classic case of the government bowing to overwhelming pressure. The administration, already battling public discontent over rising living costs, could not risk a fresh fuel price spike ahead of Christmas. “The backlash was too loud. It became clear the economy could not absorb another shock,” one senior industry operator confirmed.
Experts also say the government may have misjudged the timing. Although the 15% duty was partly designed to encourage consumption of locally refined products — especially from the Dangote Refinery — concerns remain about domestic supply stability. With Dangote still ramping up production and importers responsible for the bulk of national supply, introducing a steep tariff now would have been catastrophic.
By pulling the brakes, the FG has bought itself time, but not without raising questions about policy coordination and economic planning. The abrupt U-turn — barely two weeks after presidential approval — has once again exposed the fragile balancing act between revenue generation, energy security, and public sentiment.
For now, Nigerians are spared an immediate increase in pump prices, but the underlying issues remain unresolved. Whether the government will reintroduce the tariff in a modified form, link it to domestic refining capacity, or abandon it entirely remains to be seen. What is clear is that public pressure, economic reality and the fear of political backlash forced the administration to retreat — at least for now.
As the nation heads into the festive season, all eyes will be on fuel supply levels, downstream market stability, and the next move from Abuja. The conversation is far from over.