Public Analyst Ezenwa Nwagwu Urges Nigerian Government to Suspend 15% Import Tariff on Fuel and Diesel

Public analyst Ezenwa Nwagwu has issued a strong appeal to the Nigerian government, urging the immediate suspension of the recently approved 15 per cent import tariff on premium motor spirit (petrol) and automotive gas oil (diesel). Nwagwu argues that the controversial policy directly threatens the nation’s economic stability and will significantly worsen the current hardship faced by ordinary citizens.

Dependable NG reports that Nwagwu, who serves as the Executive Director of the Peering Advocacy and Advancement Centre in Africa (PAACA), made the call on Monday, noting that by imposing taxes on imported fuel at this critical juncture, the government risks creating an artificial scarcity, fueling inflation, and fundamentally undermining the spirit of deregulation, which was intended to open the market, not close it. This reaction follows President Bola Ahmed Tinubu’s earlier announcement confirming his approval for the 15 per cent import duty tariff on refined petroleum products, a development that had already sparked a fresh round of fuel and diesel price hikes across the country.

Speaking under the theme “Protect the People, Not the Monopoly,” Nwagwu countered the government’s justification for the tariff, which claims the policy will “protect local refining capacity” and “stabilise the downstream market.” He argued that, in reality, the policy will eliminate vital competition, substantially increase fuel prices, and concentrate monopoly control in the hands of a single private entity, specifically citing the Dangote Refinery. The analyst explained that the Dangote Refinery currently meets only approximately 40 per cent of the national fuel demand, emphasizing that restricting imports now will not stabilize supply but will inevitably create widespread scarcity. He warned that once competition disappears, prices will be dictated rather than discovered by market forces, leaving Nigerian consumers with no choice and no relief from soaring costs.

Nwagwu provided specific figures to highlight the potential impact, stating: “Imported petrol today lands at roughly N802 per litre, while the locally refined product from Dangote lands at N929.72 per litre. Adding a 15 per cent tariff will only make things worse, increasing pump prices by between N140 and N165 per litre and driving up the cost of transportation, food, and essential goods.” He stressed that the government’s proper role is to ensure fairness and transparency, not to pick winners and losers in the market. He warned that imposing a 15 per cent tariff at this time, considering Nigerians are already enduring the removal of fuel subsidies, currency devaluation, inflation, and job losses, would only deepen the hardship and risk public unrest, contradicting the very essence of deregulation.

The PAACA Executive Director concluded by issuing several demands to the Federal Government, calling for the immediate suspension of the proposed 15 per cent import tariff on petrol and diesel until domestic refining capacity reaches at least 80 per cent of national demand. He also requested the government to publicly disclose all refinery supply agreements with marketers to ensure fair access and to direct the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to publish monthly data on refinery output, import volumes, and landed costs to promote market transparency. For the medium and long term, Nwagwu proposed establishing a downstream competition framework within the Petroleum Industry Act (PIA) to prevent monopolistic pricing, alongside setting up an Energy Market Monitoring Unit under the Federal Competition and Consumer Protection Commission (FCCPC).