Government moves to ease fuel import burden and stabilise prices
The Federal Government of Nigeria has announced the suspension of the 15 percent import duty on petrol, diesel, and other petroleum products, a decision aimed at reducing the cost of fuel imports and cushioning the effect of rising energy prices on Nigerians.
The development, confirmed on Monday by the Federal Ministry of Finance and Coordinating Minister of the Economy, Wale Edun, follows weeks of consultations between the Nigeria Customs Service (NCS), oil marketers, and industry regulators over the high cost of fuel importation and logistics.
Officials say the move is part of a broader fiscal strategy to stabilise the downstream petroleum sector, ensure fuel availability, and contain inflationary pressures that have strained households and businesses in recent months.
A measure to curb inflation and support the economy
In a circular issued to all Customs Area Controllers, the ministry directed that the 15% import duty and other associated levies on petroleum products — including Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Aviation Turbine Kerosene (ATK) — be suspended with immediate effect.
The measure, the circular noted, is designed to ease the importation process, particularly for independent and major marketers who have struggled with rising foreign exchange rates and import costs since the removal of fuel subsidies.
According to a senior Customs official who spoke on condition of anonymity, “This is a temporary fiscal measure to reduce costs at the ports and help stabilise domestic fuel prices. Importers have faced serious difficulties accessing forex, and the removal of duties will provide some relief.”
Stakeholders welcome the decision
Reacting to the development, the Major Oil Marketers Association of Nigeria (MOMAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) both commended the government’s decision, describing it as a “timely intervention.”
In a statement, MOMAN’s Executive Secretary, Clement Isong, said the suspension will help lower landing costs and improve fuel supply stability across the country.
“This is a positive step by the Federal Government. Reducing the import burden will encourage marketers to resume importation of refined products, which has slowed down due to high costs and limited access to forex,” he said.
Similarly, IPMAN’s National President, Chinedu Okoronkwo, said the move demonstrates the government’s commitment to addressing the structural issues affecting the petroleum downstream sector.
Experts call for long-term solutions
While analysts have praised the decision, they caution that the suspension should be backed by broader policy reforms to ensure sustainability. Energy economist Dr. Eyo Ekpo noted that the removal of import duty, though helpful in the short term, will not fully resolve the challenges facing the petroleum industry.
“The real solution lies in boosting local refining capacity and stabilising the exchange rate. Nigeria cannot continue to depend heavily on imported fuel,” he said.
He further advised the government to fast-track the rehabilitation of state-owned refineries and support private refinery operators, including the Dangote Refinery, to meet domestic demand.
Relief for consumers and transport operators
Fuel consumers have expressed cautious optimism, hoping the suspension of import duty will lead to lower pump prices. However, marketers insist that other factors, particularly foreign exchange rates and shipping costs, will continue to influence prices at the filling stations.
Transport operators also say they expect the policy to have a positive impact on transportation fares, which have risen sharply since the beginning of the year.
A commercial driver in Lagos, Tunde Afolabi, said: “Anything that can reduce the cost of fuel is good news for us. We just hope the benefit reaches the ordinary people and not only the importers.”
Government reiterates commitment to energy reform
The Ministry of Finance reaffirmed that the temporary suspension aligns with President Bola Tinubu’s economic reform agenda, which seeks to ease the cost of doing business and stimulate growth in key sectors.
According to Wale Edun, “Our focus is on stabilising prices, supporting importers in the short term, and creating an environment that encourages domestic refining and investment in energy infrastructure.”
He added that the Federal Government is working closely with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other agencies to ensure the decision translates into tangible benefits for consumers.
With the new directive already in effect, industry observers say the coming weeks will reveal whether the suspension will help stabilise fuel supply and ease the financial strain on Nigerians grappling with persistent high living costs.
