The Peering Advocacy and Advancement Centre in Africa (PAACA) has called on the Federal Government to suspend the planned introduction of a 15 per cent import tariff on petrol and diesel, warning that the move could worsen Nigeria’s current economic hardship.
Speaking at a press conference in Abuja, PAACA Executive Director, Ezenwa Nwagwu, said the tariff policy should not be implemented until domestic refining capacity reaches at least 80 per cent of national demand.
According to him, available data show that Nigeria’s refining capacity is still insufficient to meet demand, and pushing importers out of the market could lead to scarcity and higher pump prices.
Nwagwu explained that imported petrol currently lands at about ₦802 per litre, while locally refined products cost around ₦929.72 per litre. He warned that adding a 15 per cent tariff would further raise costs, pushing pump prices up by ₦140 to ₦165 per litre across the country.
“The Dangote Refinery, which the policy appears set to favour, currently supplies only about 40 per cent of national demand and still imports components for blending,” Nwagwu said. “Restricting imports now will not stabilise supply; it will create scarcity.”
He cautioned that relying heavily on one major supplier could concentrate market power, allowing that company to influence pricing and distribution, while marginalising independent depot owners and marketers who have invested in infrastructure.
“Our call today is straightforward. The Federal Government must suspend or reject the proposed tariff, expose and correct its economic, social, and ethical flaws, and educate the public on the dangers of monopolies in vital sectors like fuel, cement, and food,” he stated.
PAACA further urged the government to promote transparency and fair competition in the downstream oil sector to protect consumers, workers, and small businesses nationwide.
Nwagwu also called for greater accountability from regulators, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), through the monthly publication of refinery output, import volumes, and landing costs.
The group recommended creating a downstream competition framework under the Petroleum Industry Act (PIA) and establishing an energy market monitoring unit under the Federal Competition and Consumer Protection Commission (FCCPC) to prevent cartel formation.
“True energy security requires multiple suppliers, not the protection of a single player,” Nwagwu added. “Government policies must prioritise citizens’ welfare, transparency, and the stability of the national economy.”
