Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) yesterday suspended the proposed implementation of the 15 per cent of valorem import duty on imported Premium Motor Spirit (PMS) and Diesel, triggering concerns across sections of stakeholders.

According to a statement posted on its X handle earlier, Director, Public Affairs Department, NMDPRA, George Ene-Ita, stated that the 15 per cent import duty was “no longer in view”.

“It should also be noted that the implementation of the 15 per cent ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view,” NMDPRA stated.

The agency assured of adequate supply of products noting that it would continue to closely monitor the supply situation and take appropriate regulatory measures to prevent distruption of supply and distribution of petroleum products across the country, especially during this peak demand period.

Ogun State Chamber of Commerce, Industry, Mines and Agriculture (OGUNCCIMA) and Nigerian Coalition of Civil Society Organisations (NCCSO) have faulted suspension. Other stakeholders however said the decision would save the country from market distortions and potentially disruptive effects that could undermine recent gains in improvement in average living costs and disinflation.

OGUNCCIMA’s President, Niyi Oshiyemi, described the suspension as a setback to Nigeria’s economic reform drive and a missed opportunity to protect local refiners, particularly the Dangote Refinery and other modular refining initiatives.

“The suspension of the 15 per cent fuel import tariff is disappointing. The policy was a step in the right direction to promote local refining, reduce dependence on imports, conserve foreign exchange and create a fair competitive environment for domestic producers. Its reversal sends a wrong signal to investors who have shown confidence in Nigeria’s energy sector,” Oshiyemi said.

He noted that implementing the tariff would have helped to stabilise the naira by curbing excessive demand for foreign exchange used in fuel importation.

He added that local refineries need firm policy backing to thrive, warning that continuous reliance on imported fuel would make the economy vulnerable to external shocks.

He said: “The Dangote Refinery alone has the capacity to meet Nigeria’s domestic fuel needs and even export to other African countries. Supporting such investments with protective policies like the import tariff is not just economic common sense; it is a matter of national interest”.

He urged the Federal Government to reconsider its decision and reintroduce the policy after consultations with key stakeholders in the oil and gas industry.

He emphasised that sustainable industrial growth requires consistency in policy direction, noting that frequent policy reversals discourage private sector participation and hinder long-term development.

While acknowledging the government’s concern about potential short-term price increases, Oshiyemi maintained that the long-term gains including job creation, forex savings and increased energy security far outweigh any temporary inconvenience.

He reaffirmed OGUNCCIMA’s commitment to advocating policies that protect local industries and promote economic diversification.

He said: “We believe in reforms that empower Nigerian investors and strengthen our productive base. The 15 per cent tariff was one of such reforms, and we urge the government to revisit it in the national interest”.

In a statement signed by its National Spokesperson, Comrade Mustapha Ahmed, NCCSO noted that the decision to suspend the implementation of the tax has given importers time to flood the market with imported fuel, thereby undermining local production and discouraging investment.

It added: “In fact it is a strategic victory for foreign fuel importers and their local collaborators, whose agenda is to keep Nigeria dependent on imported products and frustrate the growth of local refineries such as Dangote Refinery and other modular plants ready for operation”.

The coalition argued that the deferment to first quarter 2026 was wrong and should be totally discouraged, with no further extensions.

It stated: “The government must resist pressures from international traders and uphold its commitment to energy independence. All relevant agencies should monitor imports to prevent market distortion during the deferment period.

“The deferment is a temporary win for importers but a setback for Nigeria’s refining future. NCCSO urges President Tinubu to remain resolute and protect Nigeria’s local industries from external manipulation”.