The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stated that the proposed implementation of the 15 per cent of valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view.

According to a statement posted on its X handle on Thursday, the Director, Public Affairs Department, NMDPRA, George Ene-Ita, in the midst of other assurances of adequate supply of products by the Authority stated said, “It should also be noted that the implementation of the 15 per cent ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view.”

According to the statement, the Authority will continue to closely monitor the supply situation and take appropriate regulatory measures to prevent disruption of supply and distribution of petroleum products across the country, especially during this peak demand period.

Speaking with Nigerian Tribune at the maiden edition of the Energy Correspondents Association of Nigeria (ECAN) conference themed “Four Years of the PIA: Achievements, Gaps and the Road Ahead”, which was held on Thursday in Abuja, the Legal Adviser and Secretary, NMDPRA, Dr Joseph Tolorunse, said the idea behind the proposed import duty tax was actually to

provide a level-playing ground for every stakeholder, protect local industries, stimulate investment and economic development for the country.

He, however, said due to public outcry, the government has stepped it down for now with a view to reconsider and look at the best approach to the issue.

Tolorunse also argued if the policy has gone through, the price would have gone up but the country will benefit from it. He said there would have been more employment, product availability and increase in Gross Domestic Product (GDP).

He said, “Government wants to provide a level-playing ground for everybody. And also, government intention is to protect local industries so as to stimulate investment and economic development for the country. And I think that was what informed the government initially. But I think the government, being very sensitive to public outcry in some instances, have deemed fit to step it down for now.”

“But I think it’s because of the fact that government has seen that, okay, let’s take a second look at this policy and look at the best approach to the issue. If the policy has gone through, at the short run, perhaps the price may go up, but at the long run, the country will benefit from it. There will be more employment. There will be more products in the country. We are protecting the industry. Our GDP will increase. And even at the end of the day, that will stimulate investment,” Tolorunse added.

Also speaking on the suspension of the import duty tax, the managing director, AHA Strategies Limited, Mr Henry Adigun, said it behoves on the government to consult widely before coming out with decision that will have lasting impact on Nigerians.

He said such decision (import duty tax) would have made a lot senses only if there is enough local oil production which will discourage importation.

He said, “Nigerians don’t understand what’s good for them. Nigerians always are confused a lot of times about what is best for them. In a country where you don’t have sufficiency of local production and you still need to import to balance up your local production, why would you put a tariff on those that are importing? But once you get sufficiency locally, then you can put tariffs to discourage others. I’m glad it was reversed but it comes to question the kind of policy the government comes out with.”

 

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