Nigerian Government Urged to Suspend 15% Import Tariff on Petrol and Diesel

Public analyst Ezenwa Nwagwu has called on the Nigerian government to suspend the recently approved 15% import tariff on premium motor spirit (petrol) and automotive gas oil (diesel). According to Nwagwu, this policy would harm the country’s economic stability and worsen the suffering of ordinary citizens.

Nwagwu explained that the tariff would increase the pump price of petrol by N140 to N165 per liter, leading to higher transportation costs, food prices, and essential goods. This would further exacerbate the economic hardship faced by Nigerians, who are already struggling with fuel subsidy removal, currency devaluation, inflation, and job losses .

Nwagwu also raised concerns about the potential monopoly that would be created by favoring the Dangote Refinery, which currently supplies only about 40% of the country’s fuel demand. He warned that relying on a single supplier could give that company control over pricing and distribution, pushing independent depot owners and marketers out of business. To promote transparency and fair competition, Nwagwu urged the government to suspend the proposed tariff until domestic refining capacity reaches at least 80% of national needs .

The Nigeria Employers’ Consultative Association (NECA) has a differing view, arguing that the tariff would protect local industries and encourage domestic refining of petroleum products. NECA believes that this policy would accelerate Nigeria’s journey toward energy sufficiency and economic growth .

The government must weigh the potential benefits of protecting local industries against the potential harm to consumers and small businesses. Will the government listen to Nwagwu’s call and suspend the tariff, or will it press on with its plans to promote domestic refining? Only time will tell.