The Federal Government has suspended the proposed 15 percent Value Added Tax (VAT) on imported Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), commonly known as petrol and diesel.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) disclosed the development in a statement issued by its Director of Public Affairs, George Ene-Ita. He explained that the suspension aims to stabilize domestic supply and prevent unnecessary price hikes in the downstream sector.
Ene-Ita reassured Nigerians of sufficient fuel supply from both local refineries and importers, adding that current stock levels do not justify any scarcity, panic buying, or arbitrary price increases.
He noted that the implementation of the 15 percent import duty on petrol and diesel “is no longer in view.”
The tariff had initially been approved to promote local refining, reduce reliance on imports, and align import costs with domestic production. It was scheduled to take effect on November 21, 2025, after a 30-day transition period.
However, the suspension has sparked criticism from the Ogun State Chamber of Commerce, Industry, Mines and Agriculture (OGUNCCIMA). The group warned that reversing the import duty could hinder Nigeria’s progress toward energy self-sufficiency and weaken investor confidence in the refining sector.
OGUNCCIMA President, Lion Niyi Oshiyemi, described the move as a setback to economic reforms and a missed chance to support local refiners, including the Dangote Refinery and modular refinery projects.
He said the tariff would have encouraged local production, conserved foreign exchange, and created a fair competitive environment for domestic producers. Reversing it, he added, sends the wrong message to investors who have shown faith in Nigeria’s energy industry.
Oshiyemi stressed that strengthening domestic refineries would boost the naira, expand job opportunities, and secure long-term energy stability.
He urged the government to revisit the decision after broad stakeholder consultations, emphasizing that consistent policies are crucial for attracting and retaining private investment.
He further noted that frequent policy reversals discourage private sector participation and impede sustainable industrial development.
