The Federal Government of Nigeria has suspended the proposed 15 percent ad-valorem import duty on Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), popularly known as petrol and diesel, in a move aimed at maintaining stability in the downstream petroleum sector and safeguarding domestic supply chains. The announcement was made by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) through a statement signed by its Director of Public Affairs, George Ene-Ita, who stated that the implementation of the 15 percent import duty is no longer in view.
The duty had initially been approved by the federal government as part of a broader strategy to encourage local refining, reduce reliance on imported fuel, and boost non-oil revenue. Implementation of the duty was scheduled to commence on November 21, 2025, following a 30-day transition period, but concerns from industry stakeholders over potential supply disruptions and price increases led to the suspension.
The government emphasized that the decision to suspend the duty is aimed at protecting consumers from undue price escalation and ensuring sufficient fuel supply across the country. Industry operators and importers have welcomed the decision, noting that it will allow them to continue operations without abrupt financial adjustments while maintaining fuel availability nationwide.
The suspension also allows time for the government to review downstream policies and engage stakeholders in ensuring that the long-term objectives of strengthening local refining and reducing import dependence are met without disrupting market stability.
The NMDPRA confirmed that all stakeholders in the petroleum sector have been notified of the suspension and advised to continue compliance with existing regulations while awaiting further directives. The federal government stated that it remains committed to implementing policies that balance consumer protection with the strategic development of Nigeria’s energy sector and pledged to provide timely updates on any further regulatory measures.
Source: Vanguard Nigeria