The Nigerian government’s recent suspension of a 15 % import duty on premium motor spirit and automotive gas oil has been welcomed by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN). PENGASSAN President Festus Osifo warned that, had the duty been imposed, fuel costs could have risen by at least N130. In an interview on Arise Television, Osifo explained that the suspension was not accidental but the result of concerted efforts by the Trade Union Congress (TUC) to shield consumers from the added financial burden.
With local refineries currently meeting only about 40 % of Nigeria’s daily fuel demand, the import duty would have triggered a sharp increase in prices, as domestic producers would also have raised their rates. By suspending the duty, the government has averted a potential crisis, offering much‑needed relief to consumers who were already facing high fuel prices.
PENGASSAN’s statement underscores the need for the government to focus on expanding local refining capacity to reduce reliance on imported fuel and mitigate external price pressures. Nigeria continues to struggle with under‑performing refineries, and although the government has plans to revamp the sector and boost capacity, progress has been slow, leaving the country heavily dependent on imports.
The duty suspension is a temporary measure; lasting stability will require a comprehensive approach that addresses the underlying shortcomings of the refining sector, increases domestic production, and lessens dependence on imported fuel.
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