Nigeria Postpones 15 Percent Fuel Import Duty Amid Public Outcry

Federal Government Defers Fuel Import Tariff

The Nigerian Federal Government has announced the postponement of its planned 15 percent ad-valorem import duty on petrol and diesel. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) confirmed on Thursday, November 13, 2025, that the implementation of the tariff is 'no longer in view' for the immediate future, with a formal deferment until the first quarter of 2026. This decision comes after significant public and political opposition to the proposed levy.

Initial Policy and Objectives

The import duty was initially approved by President Bola Tinubu on October 21, 2025, with the directive made public on October 30, 2025. It was slated to commence in December 2025. The policy, proposed by the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, aimed to achieve several objectives:

• Strengthen local refining capacity
• Stabilize the downstream oil sector
• Promote fair competition between imported and locally produced fuels
• Ensure a stable and affordable supply of petroleum products across Nigeria

The government's intention was to align import costs with local refining realities and discourage importers from undercutting domestic producers.

Widespread Criticism and Economic Concerns

The proposed 15 percent import duty was met with widespread criticism from various stakeholders, energy experts, and civil society groups. Concerns were raised that the tariff would inevitably lead to a significant increase in fuel prices, potentially pushing the cost of petrol above ₦1,000 per litre. Critics argued that such a hike would worsen the economic hardship already faced by Nigerians, who are grappling with the effects of fuel subsidy removal and currency devaluation.

The African Democratic Congress (ADC) was among the most vocal opponents, condemning the initial approval on October 31, 2025. The party, through its National Publicity Secretary, Mallam Bolaji Abdullahi, described the decision as 'insensitive and misguided,' warning of its detrimental impact on families, commuters, transporters, farmers, and small businesses. The ADC also questioned the rationale for imposing a new levy when the Port Harcourt refinery, a key component of the government's local refining strategy, reportedly experienced issues shortly after a $1.5 billion rehabilitation.

Reasons for the Reversal

The decision to postpone the import duty was formally approved by President Bola Tinubu following a detailed request from Dr. Zacch Adedeji of the FIRS. The request, dated November 7, 2025, emphasized the need to ensure that local refining infrastructure is fully prepared, technical and operational frameworks are properly aligned, and fuel supply disruptions are minimized before the levy takes effect. The NMDPRA also cited assurances of adequate fuel supply throughout the upcoming holiday season as a factor in the suspension.

Analysts and government officials have indicated that the reversal demonstrates the administration's responsiveness to public feedback and its commitment to preventing further inflationary pressures. The move is seen as a 'holistic step toward economic relief and market stability,' aiming to balance consumer protection with the promotion of local production.

ADC's Reaction to the Postponement

Following the government's announcement, the African Democratic Congress (ADC) claimed credit for prompting the reversal. The party stated it was taking a 'victory lap' and accused the Tinubu administration of 'trial and error' governance, noting that this was approximately the seventh policy reversal by the government in two years. While welcoming the decision, the ADC urged the government to thoroughly scrutinize policies before announcing them to avoid frequent retractions.