A Nigerian petroleum products marketer has cited three key reasons behind the federal government’s decision to suspend the implementation of a 15% import duty on petrol and diesel. The move, which was announced on Thursday, has been welcomed by various stakeholders and Nigerians, who had expressed concerns over the potential impact of the tariff on fuel prices.

According to the marketer, who wished to remain anonymous, the government’s decision to put the import duty on hold was largely due to inadequate consultation with stakeholders, including those within the government. The marketer also noted that the potential political implications of higher petrol prices across the country played a significant role in the government’s decision. Furthermore, the upcoming elections were also considered, as the government may have sought to avoid any moves that could be perceived as increasing the burden on citizens.

The federal government had initially proposed the 15% import duty as part of its efforts to generate revenue and encourage local refining of petroleum products. However, the move was met with mixed reactions from economists, stakeholders, and Nigerians, with some arguing that it could lead to higher fuel prices and others seeing it as a necessary step to protect local refineries.

The suspension of the import duty is expected to ensure an adequate supply of petroleum products across the country, with the government assuring citizens that prices will be moderated. The development is also likely to prevent any single entity from having a monopoly on supply, thereby promoting competition and stability in the market.

The federal government’s decision to suspend the import duty on petrol and diesel has significant implications for the country’s energy sector and the economy as a whole. As Nigeria continues to grapple with the challenges of refining its own petroleum products, the government will need to balance its revenue generation goals with the need to ensure affordable fuel prices for its citizens. The suspension of the import duty is a temporary measure, and it remains to be seen how the government will address the underlying issues in the long term.