Nigeria pauses 15% fuel import tax amid industry backlash and price concerns

Nigeria’s fuel import policy has faced fresh debate after the government suspended a newly introduced 15% duty on petrol and diesel. The tax, approved by President Bola Tinubu on 21 October 2025, was meant to support local refineries but has now been paused by regulators. Industry groups and businesses are divided over its impact on prices and investment. On 21 October 2025, President Bola Tinubu authorised a 15% ad-valorem import duty on diesel and petrol. The move aimed to protect Nigeria’s growing refining sector, including the Dangote Petroleum Refinery, which currently produces around 45 million litres of petrol and 25 million litres of diesel daily. The Centre for the Promotion of Private Enterprise (CPPE) backed the decision, calling local refineries like Dangote’s a transformative national asset and warning that removing the duty would harm investor confidence.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) later suspended the duty. In response, the CPPE urged the government to reinstate it immediately. They argued that the tax was crucial for maintaining a competitive balance and safeguarding billions invested in domestic refining.

Oil marketers, however, criticised the duty as challenging, predicting it would push up fuel prices. Despite this, Dangote Refinery defended the policy, stating it would help secure Nigeria’s energy independence. The suspension of the 15% import duty leaves the future of Nigeria’s refining sector uncertain. If reinstated, the tax could bolster local production but may also raise costs for consumers. The government now faces pressure to balance investment protection with affordable fuel prices.