The Federal government has approved the postponement of the application of the 15 percent fuel import duty on petrol and diesel until the first quarter of 2026, contrary to the misconception that the suspension is indefinite.

The postponement, officially approved by President Bola Tinubu, followed a detailed request from the Executive Chairman of the Federal Tax Service, Dr. Zacch Adedeji, after extensive strategic consultations with key stakeholders. These consultations aimed to assess market readiness and ensure a smooth and orderly implementation of the 15% import duty.

Mr. Adedeji made this request in a letter dated November 7, 2025, entitled “Postponement of the Implementation of the Import Duty on Gasoline and Diesel Fuel.”

The letter, obtained exclusively by our correspondent on Thursday, stressed the need to ensure that local refining infrastructure is fully prepared, that technical and operational frameworks are properly aligned, and that disruptions to fuel supply are minimized before the tax comes into effect.

This tax, initially approved on October 21, 2025, aimed to increase domestic refining capacity, stabilize downstream fuel prices, and promote fair competition between imported and locally produced fuels.Earlier on Thursday, the Nigerian Petroleum Regulatory Authority (Midstream & Downstream) announced the suspension of the planned 15% ad-valorem tax on gasoline and diesel imports, reversing a previous measure intended to encourage domestic refining and reduce reliance on fuel imports.

The suspension of this policy was confirmed to our correspondent by the director of the public affairs department of the Nigerian Oil Midstream and Downstream Regulatory Authority, George Ene-Ita, on Thursday, during a telephone conversation.

He explained that the planned tariff had been suspended, stating, “You read that right, that’s what it means. It’s no longer on the agenda and cannot be implemented at this time.”He made this statement to clarify a press release previously issued by the agency. When asked whether this decision had received President Bola Tinubu’s approval, the official confirmed, “Yes, it did.”

The NMDPRA is one of the major federal agencies assigned to enforce the tariff, ensuring compliance with the import duty structure. But a new letter confirming the deferment, read that Tinubu, rather, approved the postponement of the implementation “for further review in the first quarter of 2026.”

The letter stated: “The purpose of this memorandum is to inform Your Excellency of the need for a postponement in the implementation schedule of the previously approved importation of fifteen percent (15%) of premium quality gasoline and diesel, following further strategic consultations on implementation readiness.

“Your Excellency may wish to recall that on 21st October 2025, via presidential PRES8197/HAGF/100/71/FIRS/40/88-2/NMDPRA/2, you graciously approved the introduction of fifteen per cent (15 per cent) ad-valorem import duty on Premium Motor Spirit (PMS and Diesel). The measure was conceived as a corrective policy tool to strengthen local refining capacity, stabilise downstream market prices, and promote competitive parity between imported and domestically produced fuels in line with the Renewed Hope Agenda for energy and fiscal sustainability.

“Pursuant to the above approval, and in line with Your Excellency’s directive that all fiscal and market interventions must be reflective of the administration’s drive for efficiency and balance, a series of consultative meetings was held with critical stakeholders to review implementation timelines and operational readiness.

Following these discussions, and after a thorough assessment of market conditions and the agreed strategic roadmap for implementation, it was collectively decided that a smoother and more efficient rollout was necessary. This adjustment will give stakeholders the time needed to finalize the harmonization of technical models, public communication frameworks, and the import schedule, thereby minimizing supply chain disruptions and ensuring that the reform achieves its stabilization objective.

Adedeji explained that the deferment would also create a window for government agencies to monitor local refining performance in the first quarter of 2026 and align the tariff’s rollout with verified production data and consumer price trends.

According to the letter, the adjustment aims to ensure that when the levy eventually takes effect, it will be both economically sustainable and socially responsible, in line with President Tinubu’s directive that all fiscal measures must safeguard citizens’ welfare while maintaining market discipline.

In his recommendation, the FIRS boss urged the President to approve the deferment of the commencement of the 15 per cent import levy on Premium Motor Spirit and diesel until January 2026, pending further confirmation.

“Pursuant to the foregoing, Your Excellency is graciously invited to approve the deferment of the commencement of the 15 per cent import levy on Premium Motor Spirit and Diesel until January 2026, subject to Your Excellency’s confirmation. Respectfully submitted for Your Excellency’s consideration and further directives,” the letter requested.

In his note regarding the document, President Tinubu approved the request and ordered that its implementation be postponed “for further review in the first quarter of 2026.”It is worth recalling that last month, Mr. Tinubu’s approval of a 15% import quota for gasoline and diesel sparked serious concern in the oil and gas sector. Operators warned that the measure could lead to higher gasoline prices, increased inflation, and higher import costs, even as the government insists that the policy aims to stimulate domestic refining and generate revenue.The president’s approval was communicated via a letter signed by his private secretary, Damilotun Aderemi, following a proposal submitted by the executive chairman of the Federal Tax Service, Zacch Adedeji.

The proposal sought the application of a 15 per cent duty on the cost, insurance, and freight value of imported petrol and diesel to align import costs with domestic market realities.

Adedeji, in his memo to the President, explained that the measure formed part of ongoing fiscal and energy reforms designed to strengthen the naira-based oil economy, ensure price stability, and accelerate the nation’s transition toward local refining capacity in line with the administration’s Renewed Hope Agenda for energy security and economic sustainability.

This duty, introduced as part of the federal government’s new tariff framework for petroleum products, was intended to support emerging local refineries, such as the Dangote refinery and modular units.However, this directive has generated mixed reactions. Industry stakeholders have expressed concerns about the impact of this new tax on inflation and rising prices at the pump, especially since Nigerian refineries have not yet reached full operational capacity.

This suspension reflects the government’s desire to find a fair balance between protecting consumers and promoting local production in Nigeria’s downstream oil market, which is undergoing a period of transition.

In response, petroleum product distributors and industry experts praised President Bola Tinubu for suspending the proposed 15% import duty on petroleum products, calling it a timely intervention that prevents a potential surge in fuel prices and inflation across the country.

Reacting to this development, the chairman of the Association of Petroleum Retail Outlet Owners of Nigeria, Billy Gillis-Harry, said that this suspension was a clear indication that the federal government was listening to feedback and aware of the economic realities facing Nigerians.

“I am sure you recall that you interviewed me and I told you that PETROAN could not give a categorical statement on the policy until a test run was done to determine its impact,” he said. “Now that the government has seen that the policy may negatively affect the Nigerian people, it has wisely suspended it. That is the essence of governance, testing, analysing, and acting in the best interest of citizens.”

Gillis-Harry emphasized that while import duties are not inherently harmful, imposing a 15% tariff at this stage of Nigeria’s economic recovery would have been excessive. He added that the postponement demonstrated the government’s responsiveness to market dynamics and its ongoing efforts to strengthen domestic refining capacity.

“Import duty is not a bad thing, but 15 per cent is a lot. We believe that, at the appropriate time, government policy to encourage local refining will make a whole lot of difference,” he noted. “We congratulate the President for realising in good time that a deferment of the 30-day test run was necessary. We have a listening President, an analytical leader who works tirelessly on the economy. At the right time, there will be a national conversation on how to support local refiners.”