The decision of the federal government to suspend the implementation of the 15 per cent import duty on Premium Motor Spirit (PMS) and diesel imports has not gone down well with the Ogun State Chamber of Commerce, Industry, Mines and Agriculture (OGUNCCIMA).
The group faulted the federal government’s decision to set aside the policy, warning it could slow down the nation’s progress toward energy independence and weaken investor confidence in the refining sector.
“The suspension of the 15 percent fuel import tariff is disappointing. The policy was a step in the right direction to promote local refining, reduce dependence on imports, conserve foreign exchange, and create a fair competitive environment for domestic producers.
“Its reversal sends a wrong signal to investors who have shown confidence in Nigeria’s energy sector,” the president of OGUNCCIMA, Mr Niyi Oshiyemi, stated.
On Thursday, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced the suspension of the controversial policy.
For OGUNCCIMA, this is a setback to Nigeria’s economic reform drive and a missed opportunity to protect local refiners, particularly the Dangote Refinery and other modular refining initiatives.
According to Mr Oshiyemi, the tariff would have helped to stabilize the Naira by curbing excessive demand for foreign exchange used in fuel importation, adding that local refineries need firm policy backing to thrive, warning that continuous reliance on imported fuel would make the economy vulnerable to external shocks.
“The Dangote Refinery alone has the capacity to meet Nigeria’s domestic fuel needs and even export to other African countries. Supporting such investments with protective policies like the import tariff is not just economic common sense; it is a matter of national interest,” he stated.
The OGUNCCIMA leader urged the central government to reconsider its decision and reintroduce the policy after consultations with key stakeholders in the oil and gas industry, emphasising that sustainable industrial growth requires consistency in policy direction, noting that frequent policy reversals discourage private sector participation and hinder long-term development.
While acknowledging the government’s concern about potential short-term price increases, Mr Oshiyemi maintained that the long-term gains including job creation, forex savings, and increased energy security far outweigh any temporary inconvenience, reaffirming the organisation’s commitment to advocating policies that protect local industries and promote economic diversification.
“We believe in reforms that empower Nigerian investors and strengthen our productive base. The 15 percent tariff was one of such reforms, and we urge the government to revisit it in the national interest,” he said.