Import duty suspension on petrol and diesel has sparked celebration among independent oil marketers and drawn caution from experts.
When the Federal Government reversed the controversial 15% levy, Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, immediately welcomed it.
Import Duty Suspension Sparks Debate
“It shows the government is listening,” he said.
“This tax would have indirectly regulated a deregulated market.”
Moreover, Ukadike explained that imported fuel plays a key role in preventing monopolies because local refineries still cannot meet national demand.
Market Competition And Local Refineries
“Prices should follow the market, not monopolies.
If imported fuel costs less, Nigerians will naturally buy it,” he added.
However, not everyone shared this optimism.
Read Also: Imported Petrol: FG Suspends 15% Import Tax
An economist at Nasarawa State University, Paul Adams, warned that suspending the duty could weaken energy security and industrial growth.
“Local refineries struggle to compete, while international traders gain more influence,” he said.
Similarly, founder of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, urged the government to reinstate the duty.
He argued that its removal threatens domestic refining and reduces investor confidence.
Balancing Relief And Strategy
Earlier, President Bola Ahmed Tinubu approved the 15% levy in October 2025 to encourage local refining and moderate domestic fuel prices.
Despite the reversal, the government reassured Nigerians that they maintain sufficient supply and closely monitor distribution networks.
Ultimately, the debate highlights a classic tension: balancing immediate consumer relief against long-term energy independence and industrial strategy.
