A group known as the Peering Advocacy and Advancement Centre in Africa (PAACA) has called on the Nigerian government to delay the implementation of the 15 per cent tariff on import of petrol and diesel until local refineries reach the capacity to meet at least 80 per cent of national demand. The group, which made …
PAACA Urges FG to Delay Fuel Import Tariff Until Local Refining Capacity Improves
A group known as the Peering Advocacy and Advancement Centre in Africa (PAACA) has called on the Nigerian government to delay the implementation of the 15 per cent tariff on import of petrol and diesel until local refineries reach the capacity to meet at least 80 per cent of national demand.
The group, which made the call during a press conference in Abuja, said available data show that domestic refineries are yet to reach the capacity to meet national demand.
PAACA Executive Director Ezenwa Nwagwu warned that implementing the 15 per cent import duty on petrol and diesel would force importers out of the market and lead to scarcity and higher prices.
Comparing the cost of imported petroleum products with the locally produced ones, Nwagwu said domestically refined petrol currently costs N929.72 per litre, whereas imported product lands at about N802 per litre.
According to him, a 15 per cent tax would result in extra costs, raising the price of petrol nationwide by N140 to N165 per liter.
Nwagwu pointed out that the argument for import restrictions is premature because the Dangote Refinery, which the strategy seems to favour, currently supplies over 40 per cent of the country’s demand and still imports components for its own blending.
Additionally, he cautioned that relying on a single large supplier could lead to monopoly of distribution and affect the price while marginalizing independent depot owners and marketers who have made significant investments in infrastructure.
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It called on the Federal Government to suspend the proposed tariff, take measures to correct its economic, social, and ethical defects, and enlighten the public on the dangers of monopolies in vital sectors like fuel, cement, and food.
It also emphasized the need for the government to promote transparency and fair competition to protect consumers, workers, and small businesses across the country.
“The facts are clear. The Dangote Refinery currently meets only about 40 per cent of national fuel demand,” PACCA stated.
“Restricting imports now will not stabilize supply; it will create scarcity. 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.”
Nwagwu urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to publish refinery output, import volumes, and landing costs on a monthly basis, and that refinery supply agreements be transparent.
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To prevent cartel formation, the organization also advocated the establishment of a downstream competition framework under the Petroleum Industry Act and an energy market monitoring unit under the Federal Competition and Consumer Protection Commission.
Nwagwu stressed that true energy security involves various suppliers rather than the protection of a single player, and that government policies must prioritize residents’ welfare.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
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