Nigeria drops planned fuel import tariff

Nigeria has ended plans to impose a 15% import duty on petrol and diesel amid assurances of adequate supply during the year-end holidays, the downstream regulator said on Thursday.

The tariff, approved by President Bola Tinubu as part of fiscal reforms to boost non-oil revenues, was disclosed in a leaked government memo last month. It was supposed to take effect in December.

"The implementation of the 15% ad-valorem import duty on imported premium motor spirit and diesel is no longer in view," the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said in a statement.

Fuel marketers had lobbied against the measure, warning it could restrict imports and leave the country reliant on a single source, the 650,000-barrel-per-day Dangote Petroleum Refinery in Lagos.

Africa's biggest oil producer spends millions of dollars each year importing fuels and this has continued even after the Dangote Petroleum Refinery began processing crude last year.

The NMDPRA assured buyers of adequate supply during the holiday and warned against panic buying.
"The Authority will continue to monitor supply and take necessary steps to avoid disruptions, especially during this peak demand period," it said.

By Isaac Anyaogu, Reuters