### Nigeria's Federal Government Responds to Industry Pressure by Suspending 15% Import Duty on Fuel In a significant policy reversal, Nigeria's Federal Government has withdrawn its recently proposed 15% import duty on Premium Motor Spirit (PMS) and Automotive Gas Oil (Diesel). This decision comes after widespread agitation from stakeholders in the downstream petroleum sector, who argued that the tax would exacerbate fuel prices and negatively impact supply. The government initially aimed to protect local refineries, including the Dangote Refinery, from fuel dumping practices by foreign suppliers, particularly from the Middle East and Russia. However, the backlash from industry players and the public led to the suspension of this duty, with assurances of maintaining adequate fuel supply across the nation [https://energynewsafrica.com/nigeria-federal-government-withdraws-15-import-duty-on-petrol-and-diesel-after-agitation][https://naija247news.com/energy-commodities/oil-gas/nmdpra-cancels-15-fuel-import-duty-assures-adequate-petrol-and-diesel-supply]. ### Breakdown of the Suspension Decision 1. **Background of the Duty**: - The 15% import duty was introduced to protect local refineries from international competition and fuel dumping [https://dailypost.ng/2025/11/13/nigerian-govt-suspends-implementation-of-15-petrol-import-duty]. 2. **Public and Industry Reaction**: - The proposed duty faced significant backlash from industry stakeholders, who argued it would lead to increased fuel prices and supply shortages [https://legit.ng/business-economy/energy/1683152-fg-takes-bold-decision-suspends-15-import-duty-petrol-diesel-experts-predict-price-crash]. 3. **Government's Response**: - Following the outcry, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced the suspension of the duty, emphasizing the need to ensure stable fuel supply [https://gentechnews.com.ng/fg-suspends-15-import-duty-on-petrol-diesel]. ### Supporting Evidence and Data - **Stakeholder Concerns**: Industry experts warned that the import duty could lead to a spike in fuel prices, affecting transportation and overall economic stability [https://mojidelano.com/nigerian-govt-suspends-15-import-duty-on-petrol-diesel-amid-public-outcry]. - **Government Assurances**: The NMDPRA has assured the public that there will be no fuel shortages despite the suspension of the import duty, aiming to maintain a steady supply of petrol and diesel [https://globalfinancialdigest.com/nmdpra-suspends-15-import-duty-on-petrol-diesel-assures-nigerians-of-adequate-fuel-supply]. ### Conclusion: Implications of the Suspension The Nigerian government's decision to suspend the 15% import duty on petrol and diesel reflects a responsive approach to public and industry concerns. 1. **Immediate Impact**: - The suspension is expected to stabilize fuel prices and prevent potential shortages, addressing the immediate fears of consumers and businesses alike [https://thenicheng.com/fg-withdraws-plan-to-impose-15-import-duty-on-petrol-diesel]. 2. **Long-term Considerations**: - While the government aims to protect local refineries, it must balance this with the need for affordable fuel prices and a reliable supply chain [https://naijaonpoint.com.ng/just-in-fg-suspends-planned-15-import-duty-on-petrol-diesel]. 3. **Future Policy Directions**: - The government may need to explore alternative measures to support local refineries without imposing burdensome duties that could harm consumers [https://championnews.com.ng/2025/11/13/fg-bows-to-pressure-suspends-planned-15-import-duty-on-fuel-diesel]. This situation underscores the delicate balance between protecting local industries and ensuring consumer welfare in Nigeria's complex fuel market.