The Nigerian government has suspended the implementation of a 15% import duty on premium motor spirit and automotive gas oil, according to a statement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The decision comes after President Bola Ahmed Tinubu approved the implementation of the duty last month to encourage the Dangote Refinery.
The NMDPRA spokesperson, George Ene-Ita, disclosed that the suspension is intended to prevent disruption of supply and distribution of petroleum products across the country, especially during peak demand periods. The regulatory authority assured the public of adequate supply nationwide, urging Nigerians to avoid panic buying of petrol and diesel.
The statement emphasized that the implementation of the 15% ad valorem import duty on imported premium motor spirit and diesel is no longer in view. The NMDPRA assures that there is a robust domestic supply of petroleum products, including petrol, diesel, and liquefied petroleum gas, sourced from both local refineries and importation.
The Authority warned against hoarding, panic buying, or non-market reflective escalation of prices of petroleum products, stating that it will continue to closely monitor the supply situation and take appropriate regulatory measures to prevent disruption. The NMDPRA appreciates the efforts of stakeholders in the midstream and downstream value chain in ensuring a smooth and uninterrupted supply and distribution of petroleum products.
The decision to implement the 15% import duty had drawn mixed reactions from economists, stakeholders, and Nigerians, with some arguing that it would encourage the Dangote Refinery, while others believed it would worsen hardship for Nigerians due to potential price increases. The suspension of the duty is expected to alleviate concerns about price hikes and ensure energy security in the country. The NMDPRA’s commitment to guaranteeing energy security is reiterated, as the authority continues to work towards maintaining a stable and uninterrupted supply of petroleum products.