The Federal Government has approved the postponement of the planned 15 per cent import duty on petrol and diesel until the first quarter of 2026, clarifying that the suspension is not indefinite but a strategic deferment to ensure effective implementation.
The approval, granted by President Bola Tinubu, followed a detailed memo submitted by the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, who requested additional time after extensive consultations with key stakeholders to evaluate market readiness and prevent disruptions in the fuel supply chain.
In the letter dated November 7, 2025, titled “Deferment of the Commencement of the Implementation of the Premium Motor Spirit (Petrol) and Diesel Import Duty,” Adedeji emphasised the need for sufficient preparedness across local refining infrastructure, technical systems, and operational frameworks before the tariff comes into force.
The 15 per cent duty—initially approved on October 21, 2025—was designed to strengthen domestic refining capacity, stabilise downstream fuel prices, and promote competitive balance between local and imported products.
Earlier on Thursday, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) also announced the suspension of the levy, confirming that it was not feasible for immediate implementation. The Authority’s Director of Public Affairs, George Ene-Ita, stated that the tariff was “no longer in view and not implementable at this time,” adding that the President had approved the decision.
A new internal communication seen by officials further confirmed that President Tinubu opted for a structured postponement rather than an open-ended suspension—directing that the policy be reviewed in the first quarter of 2026.
In his memo to the President, Dr. Adedeji recalled the October approval and explained that subsequent consultations revealed the need for a phased, orderly rollout. He argued that extending the timeline would allow stakeholders to complete alignment on technical templates, communication strategies, and fuel import scheduling, all of which are essential to maintaining supply stability.
The memo noted that the deferment will create an opportunity for government agencies to monitor refinery output in early 2026 and link the tariff implementation with verified production data and fair consumer pricing trends. This approach, it said, would ensure that the eventual rollout is both economically sustainable and socially responsible, consistent with President Tinubu’s directive that fiscal measures must protect citizens while maintaining market discipline.
Dr. Adedeji therefore recommended a shift of the commencement date to January 2026, subject to presidential confirmation. In his endorsement, President Tinubu approved the request and instructed that the implementation be deferred “for further review in the first quarter of 2026.”
Last month’s approval of the 15 per cent duty had generated considerable concern across the petroleum sector, with operators warning that it could raise petrol prices, worsen inflation, and increase import costs—particularly as local refineries are yet to reach full operational capacity. The Federal Government, however, maintained that the measure was intended to support emerging local refineries, strengthen the oil-based economy, and reduce dependence on imported fuel.
The decision to defer the policy reflects the administration’s effort to balance consumer protection with its long-term goal of promoting local production and stabilising Nigeria’s evolving downstream market.
