The Peering Advocacy and Advancement Centre in Africa (PAACA) has called on the Federal Government to suspend plans to introduce a 15 percent import tariff on petrol and diesel, warning that such a move could sharply raise pump prices and worsen economic hardship.
PAACA said the policy should only be implemented when local refineries can meet at least 80 percent of national demand.
Speaking at a press briefing in Abuja, the organisation’s Executive Director, Ezenwa Nwagwu, stated that current data show Nigeria’s refining capacity remains far below national needs. He warned that restricting imports now could cause scarcity and price hikes.
According to him, imported petrol currently lands at about ₦802 per litre, while locally refined products land at ₦929.72 per litre. He explained that adding a 15 percent tariff would push prices up by between ₦140 and ₦165 per litre nationwide.
Nwagwu noted that the Dangote Refinery, which appears to be the main beneficiary of the policy, currently supplies about 40 percent of national demand and still relies on imported components for blending.
He cautioned that relying on a single supplier could create monopolies and give one company control over pricing and distribution, sidelining independent marketers and depot owners.
“Our call is clear,” he said. “The government must suspend or reject the proposed tariff, address its economic and ethical flaws, and ensure transparency to prevent monopolies in critical sectors like fuel, cement, and food.”
Nwagwu urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority to regularly publish refinery outputs, import volumes, and landing costs. He also called for a downstream competition framework under the Petroleum Industry Act and an energy market monitoring unit within the Federal Competition and Consumer Protection Commission to prevent cartel formation.
He added that true energy security depends on multiple suppliers and fair competition, not on protecting a single player, stressing that government policies must prioritise citizens’ welfare.
