Nigeria’s 15% Fuel Import Duty U-Turn: What It Means For The Economy

Nigeria’s suspension of the 15% import duty on petrol and diesel has sparked discussions around affordability, energy security, and the future of domestic refining.

The policy was originally introduced to encourage reliance on local refineries such as Dangote and emerging modular refineries by making imported fuel less attractive. With the duty now suspended, the government clearly prioritizes short-term relief for consumers and businesses facing rising costs.

But this shift raises deeper questions about long-term strategy. The move creates a trade-off between immediate affordability and the broader goal of strengthening local refining capacity. It underscores a complex tension between economic pressures, investor confidence, and the country’s ambition to become less dependent on fuel imports.