The President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, has welcomed the federal government’s suspension of the planned 15 per cent import duty on petroleum products. He described it as a strategic decision that shields consumers and also supports local production.
Suspension Result of Behind-the-Scenes Dialogue
Speaking to ARISE NEWS on Thursday, Osifo explained that the suspension followed sustained engagement behind the scenes rather than public protests. “Nigerians always expect us to be on the street shouting. However, for every protest, there are ten or twenty decisions we discuss at the table that benefit the working class and Nigerians,” he said.
Potential Impact of the Proposed Duty
Osifo highlighted the consequences of the 15 per cent tax. Since local production currently covers only 35 to 40 per cent of daily consumption, over 60 per cent of petroleum products are imported. “Consequently, if the 15 per cent duty had been applied, imported fuel prices would have increased sharply,” he said.
Moreover, he cited the Dangote Refinery’s contribution to domestic supply but stressed that local output is still insufficient. “If we were producing up to 90 per cent locally, the government could have reduced import duties further. However, given current production levels, extra costs would have been passed to Nigerians,” Osifo added.
Free Trade Zone Complexities
Osifo also explained the complexity of import duties in free trade zones. “Products imported into free trade zones typically avoid taxes until moved into the Nigerian economy. Therefore, the government eventually recognized that bringing products into the market requires payment of import duty,” he said.
Addressing Pension Challenges in Oil Sector
In addition, Osifo raised concerns about pension management in the oil and gas industry. He promised a stakeholder engagement to resolve gaps in pension contributions and ensure better protection for retirees. “We will release a communique next week detailing discussions with oil and gas managers and pension fund operators,” he said.
Conclusion
PENGASSAN’s praise for the suspension of the 15 per cent fuel import duty underscores the need to balance local production, consumer protection, and policy realism. Moreover, Osifo’s statements highlight ongoing efforts to ensure energy policies benefit Nigerians while strengthening domestic petroleum output.
