The Business NG - The BusinessNG

In this issue

Editorial Focus for BusinessNG
The suspension of the proposed 15% ad-valorem import duty on petrol and diesel reflects a much-needed recalibration in Nigeria’s downstream policy direction. While the initial approval signaled the government’s intent to boost revenue, it risked triggering immediate price increases at a time when households and businesses are already strained by inflation and high operating costs. Oil marketers had warned that the levy would make fuel imports more expensive and complicate efforts to supplement output from domestic refineries still ramping up production.
By reversing course, the NMDPRA has averted a potentially disruptive surge in pump prices and reinforced confidence in the sector’s regulatory responsiveness. The assurance of sufficient supply across PMS, AGO and LPG is also critical, especially as demand rises in the peak season.
However, this episode highlights deeper issues: inconsistent policy signaling, weak communication, and the urgent need for a stable downstream framework that balances revenue goals with economic realities. Going forward, the government must prioritise predictability, support refinery optimisation, and strengthen supply-chain oversight to curb hoarding and artificial scarcity. Stability—not surprise levies—will determine investor confidence and market efficiency.