On November 13, the Nigerian federal government suspended a 15% import duty on petrol and diesel, a measure initially approved by President Bola Ahmed Tinubu in October 2025. The Centre for the Promotion of Private Enterprise (CPPE) expressed concerns that this suspension could weaken domestic refining efforts, deter investor confidence, and increase pressure on the naira. The aim of the original duty was to support local refineries, promote backward integration, and ensure fair competition for domestic producers.
CPPE’s chief executive, Muda Yusuf, highlighted that domestic refiners face significant structural disadvantages, including high operational costs due to inadequate infrastructure and limited access to finance. The reversal of this duty could expose local refineries, such as the Dangote Refinery, to unfair competition from imported fuels, jeopardizing substantial investments and undermining Nigeria’s long-term industrial ambitions.
Furthermore, a surge in fuel imports could escalate foreign-exchange demand, exacerbate inflation, and worsen the balance-of-payments deficit. Increased reliance on imports also heightens vulnerability to global price fluctuations and geopolitical risks, which could displace jobs and value-chain activities in local markets.
CPPE urged the government to reinstate the import duty to restore competitive balance and protect local refining capacity. They recommended production incentives, reduced port charges, and investment in critical infrastructure to stabilize the industry. As Nigeria seeks to reduce its dependency on imported refined fuels—especially in light of the new Dangote Refinery—the CPPE stressed that safeguarding these assets is essential for achieving energy independence, job creation, and overall economic sovereignty.