The Peering Advocacy and Advancement Center in Africa (PAACA) has issued a strong appeal to the Federal Government, urging the immediate suspension of a planned 15 percent import tariff on petrol, commonly known as PMS, and diesel.
Protect the People, Not the Monopoly
Speaking to journalists on Monday, the Executive Director of PAACA, Ezenwa Nwagwu, argued that introducing this tax now could lead to severe economic consequences. He stated that the policy risks creating artificial fuel scarcity, driving inflation higher, and undermining the very principles of the deregulation policy that was designed to foster an open market.
Nwagwu framed the discussion under the theme "Protect the People, Not the Monopoly." He expressed deep concern that the government's justification for the tariff—to protect local refining capacity and stabilize the downstream market—is flawed. He contends that the real outcome will be the elimination of competition and a dangerous concentration of market power.
Economic Impact and Price Hikes
The executive director provided concrete figures to illustrate his point. He revealed that currently, imported petrol lands at about ₦802 per litre, while the product from the local Dangote Refinery costs ₦929.72 per litre.
He warned that slapping a 15 percent tariff on imports would make a bad situation worse, potentially increasing pump prices by an estimated ₦140 to ₦165 per litre. This surge would have a domino effect, raising the cost of transportation, food, and other essential goods for Nigerians who are already grappling with the removal of fuel subsidies and high inflation.
Nwagwu emphasized that the Dangote Refinery currently meets only about 40 percent of national fuel demand. Restricting imports through tariffs before local capacity is sufficient would not stabilize supply but would inevitably lead to scarcity. He argued that without competition, prices would be dictated by a single player rather than discovered through a free market, leaving citizens with no alternatives and no relief.
Call for Transparency and Long-Term Solutions
PAACA has presented a set of clear demands to the Federal Government. The primary request is the immediate suspension of the proposed 15 percent import tariff until domestic refining capacity can meet at least 80 percent of national demand.
The organization also calls for greater transparency, urging the government to publicly disclose all refinery supply agreements with marketers. Furthermore, it demands that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) should publish monthly data on refinery output, import volumes, and landed costs.
For the medium to long term, PAACA proposes the establishment of a downstream competition framework within the Petroleum Industry Act (PIA) to prevent monopolistic pricing. It also recommends creating an Energy Market Monitoring Unit under the Federal Competition and Consumer Protection Commission (FCCPC) to track anti-competitive behaviour, and government investment in logistics to reduce costs for all market participants.
