The Peering Advocacy and Advancement Centre in Africa (PAACA) has called on the Federal Government to suspend its planned 15 per cent import tariff on petrol and diesel, warning that the move could worsen the country’s economic hardship and drive up pump prices.
Speaking at a press briefing in Abuja, PAACA Executive Director, Ezenwa Nwagwu, said Nigeria’s refining capacity is still too low to justify the tariff, as local refineries currently meet less than half of national fuel demand. He argued that enforcing the tariff before production capacity improves to at least 80 per cent of national needs could create scarcity and inflate prices.
Nwagwu explained that imported petrol presently lands at about ₦802 per litre, while locally refined products land at ₦929.72 per litre. Adding a 15 per cent tariff, he said, would raise fuel costs by between ₦140 and ₦165 per litre, pushing pump prices beyond the reach of most Nigerians.
He noted that the Dangote Refinery, which the policy seems designed to support, still imports some components for blending and currently supplies only around 40 per cent of national demand. According to him, restricting imports at this stage could give one supplier excessive control over pricing and distribution, marginalising independent marketers and depot owners.
PAACA also urged the government to prioritise transparency and competition in the downstream sector. The group recommended that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) publish monthly data on refinery output, import volumes, and landing costs to prevent market manipulation.
In addition, the organisation proposed the creation of a downstream competition framework under the Petroleum Industry Act and an energy market monitoring unit within the Federal Competition and Consumer Protection Commission (FCCPC) to check possible cartel activities.
Nwagwu stressed that true energy security depends on having multiple suppliers rather than favouring a single player. He urged the government to design policies that protect consumers, promote fairness, and ensure affordable access to energy for all Nigerians.
