Oil marketers have praised the Federal Government for suspending the controversial 15% import duty on petrol and diesel, saying that this shows the opinion of Nigerians is being taken into consideration.
The independent oil marketers, who had protested against the 15% import duty on petroleum products, warned that proceeding with the policy would be an indirect regulation in a deregulated environment.
They argued that the importation of these products helps to prevent monopoly by these local refineries and encourages competition.
However, some analysts were very critical of the suspension, saying that it is a long-term policy misalignment with Nigeria’s energy security and industrial goals, as well as making imported fuel cheaper than locally refined ones.
President Bola Ahmed Tinubu had in October 2025, approved a 15% ad-valorem import duty on diesel and petrol.
The approval by the president followed a request by the Federal Inland Revenue Service (FIRS) seeking his consent to apply the duty on the cost, insurance, and freight (CIF) value of imported petrol and diesel to align import costs with domestic realities.
In its justification of the policy, the presidency had explained that it was designed to make these imported petroleum products less competitive, encourage local refining, boost domestic capacity and moderate prices.
However, Nigerians and the majority of the oil marketers expressed concern that the imposition of 15% duty on petrol and diesel imports will lead to an increase in the pump price of fuel that could exceed N1,000 per litre.
These oil marketers said that there are not enough local refiners, insisting that these refineries are incapable of meeting local demand.
Meanwhile, some analysts had applauded the move as a welcome development that would discourage the importation of petroleum products and support local refineries.
In an exclusive interview with Naijaonpoint, the Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said the forces of market supply should be applied without any interference, hindrance or any other form of revenues or taxes.
Ukadike noted that fear of monopoly by the local refiners is the primary reason why the independent marketers are in support of the importation of petroleum products.
He said, ‘’We applaud the reversal, the decision of the federal government. It shows that input from the masses to the government is being considered. You know that as independent marketers, we kicked against this issue of import tax on imported petroleum products because, like I said, it is an indirect regulation in a deregulated environment.
‘’It amounts to placing the horse before the cat. So, since it is a free market economy in line with the Petroleum Act, it is very, very pertinent that competition should be encouraged and the forces of market supply should be applied without any interference or hindrance or any other form of revenue or inverted or converted tax. So, this removal is welcomed by independent marketers.
‘’The most important thing is that some of these importations checkmate our local refineries. So, we thank the federal government and we will appreciate that the federal government will try as much as possible to encourage the indigenous refineries, both the modular refineries and Dangote refineries, by giving them crude oil in naira, to be able to ensure that this kind of policy does not trigger unnecessary inflation, galloping inflation in the country.’’
On why some of the marketers are not buying from Dangote Refinery, the IPMAN Spokesperson said, ‘’Some of the decisions that were released by NMDPR are that Dangote is producing, but it is not sufficient to take care of the daily consumption of Nigerians. But that one shouldn’t be our problem. What should be our problem is the price of the petroleum product at our filling stations.
On why some of the marketers are not buying from Dangote Refinery, the IPMAN Spokesperson said, ‘’Some of the decisions that were released by NMDPR are that Dangote is producing, but it is not sufficient to take care of the daily consumption of Nigerians. But that one shouldn’t be our problem. What should be our problem is the price of the petroleum product at our filling stations.
‘’If we don’t say, because Dangote is producing massively, then the price is N1,500, and if we import, we can get it at N400 or N500, we say, no, Dangote should improve. That is the fear of the monopoly. That is why some people are against Dangote’s monopoly. So, it has to do with price; the demand and supply determine price. If the price is low, the demand will be high; if the price is high, the demand will be low. So, that is why it is also pertinent that there should be a free market economy, in and out. Because, if you now find out that the product in the international market is cheaper than what Dangote is giving out, people will go and buy.’’
Speaking also on the issue, an economic expert from the Department of Economics at the Nasarawa State University, Paul Adams, argued that the suspension of import duty can encourage monopoly, as it encourages the oil traders to rely on cheaper imported petroleum products rather than locally refined ones.
Adams said, ‘’To me, the suspension of the 15% import duty on petrol and diesel by the Federal Government is a short-term price moderation strategy but a long-term policy misalignment with Nigeria’s energy security and industrialization goals.
‘’However, from an industry perspective, the decision undermines the government’s stated objective of encouraging local refining capacity. At a time when Nigeria should be consolidating progress with the Dangote Refinery and numerous modular refineries, removing import duties effectively makes imported fuel artificially cheaper than locally refined alternatives. This contradicts the broader push for domestic value addition, energy independence, and job creation.
‘’Ironically, the suspension of import duty can reinforce monopoly rather than reduce it. Why? Because it makes imports cheaper, encourages more traders to rely on foreign supply rather than local refining.
‘’For me, this strengthens the influence of larger international trading companies that already dominate fuel import operations. Also, this makes domestic refineries that are still ramping up production to be placed at a competitive disadvantage, giving importers more market leverage.’’
The Federal Government announced on November 13 the suspension of the proposed 15% ad-valorem import duty on petrol and diesel.
The government had also reassured Nigerians that there is sufficient supply of petroleum products across the country despite the rising demand during the current peak season, noting that it is maintaining close surveillance of supply and distribution networks nationwide to prevent any disruptions or artificial scarcity.
In a related development, the Founder/CEO of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, had called on the Federal Government to immediately reinstate the suspended 15% fuel import duty.
It warned that its removal threatens Nigeria’s refining sector, undermines investor confidence, and jeopardises the country’s long-term economic and energy security objectives.