Suspension of Fuel Import Duty Threatens Local Refining, Warn Civil Society Groups

The Nigerian Coalition of Civil Society Organisations (NCCSO) has criticised the Federal Government’s decision to suspend the 15 per cent import duty on petrol and diesel, describing it as a blow to the country’s refining ambitions.

Speaking on Thursday, the coalition’s National Spokesperson, Comrade Mustapha Ahmed, expressed concern that the deferment, approved by President Bola Ahmed Tinubu on November 7, 2025, provides a temporary advantage to foreign fuel importers while undermining local refineries.

Ahmed argued that delaying the duty to the first quarter of 2026 undermines efforts to achieve energy independence and called on the government to remain firm in protecting Nigeria’s domestic oil industry.

“While the deferment is framed as a technical adjustment, it effectively gives importers the opportunity to dominate the market with foreign fuel, discouraging investment in local production and threatening refineries like the Dangote Refinery and other modular plants ready for operation,” he said.

He further urged regulatory agencies to closely monitor fuel imports during the suspension period to prevent market distortions.

The suspension follows public concern that immediate implementation of the 15 per cent ad-valorem duty, initially approved in October 2025, could lead to higher fuel prices and worsen inflationary pressures.

The duty, intended to align import costs with domestic production and support local refinery growth, was approved by President Tinubu following a proposal from the Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji, and communicated through the President’s Private Secretary, Damilotun Aderemi.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) subsequently announced the deferment in a statement signed by its Director of Public Affairs, George Ene-Ita.

Ahmed warned that any further delays or extensions would threaten Nigeria’s refining future, stressing that the government must resist external pressures and prioritise local industry growth.