A Lagos State governorship aspirant under the Peoples Democratic Party, Mr Funso Doherty, has called on the National Assembly to investigate the recently approved 15 per cent import duty on Premium Motor Spirit, commonly known as petrol. He warned that the policy, if implemented, would worsen the economic hardship faced by millions of Nigerians.
In an open letter addressed to Senate President Godswill Akpabio, Doherty described the import duty as “fundamental and ill-timed,” questioning both the rationale for the decision and the propriety of the process that led to its approval.
It was widely reported that President Bola Tinubu gave the green light for the new tariff after receiving a proposal from the Chairman of the Federal Inland Revenue Service, now renamed the Nigeria Revenue Service. According to reports, the FIRS chairman had defended the levy as a measure aimed at supporting local fuel producers and enabling them to achieve cost recovery, rather than as a revenue-generating tool for the government.
Doherty, however, disagreed with this justification. He noted that major domestic producers, including the Dangote Refinery, already benefit from significant fiscal incentives such as tax holidays and waivers due to their location within export processing zones. He questioned the need for further protection through import tariffs, arguing that it would unfairly transfer additional costs to Nigerian consumers.
“I hereby call for the National Assembly to investigate the circumstances and process surrounding the introduction of the import duty,” Doherty wrote. “In doing so, you may wish to invite the NMDPRA, the Federal Ministry of Trade and Investment, and key industry operators to determine whether imposing this additional burden on Nigerians at this time is justified. The proceedings should be transparent and, as far as possible, open to the press to keep the public informed.”
Doherty warned that the proposed import duty could add about ₦100 to the current pump price of petrol, potentially triggering a new wave of inflation and pushing more Nigerians into financial distress.
“Pricing policies relating to petrol have far-reaching implications for Nigerians,” he said. “Most citizens are already severely stretched financially, and any additional cost at this time will be devastating.”
The PDP chieftain argued that the import duty effectively establishes a new tariff regime at a time when citizens can least afford it. He recalled that the Federal Government’s removal of fuel and foreign exchange subsidies had already led to a fivefold increase in petrol prices over the past two years.
Doherty also raised concerns about the FIRS’s involvement in proposing the new duty, stressing that such trade-related measures lie outside the agency’s statutory mandate.
“It is not clear why this proposal originated from the FIRS,” he noted. “The development of customs and excise policies should rightly fall under the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Federal Ministry of Trade and Investment.”
He further criticised the tariff framework for retaining import parity pricing while allowing local producers to recover costs even when international prices drop. According to him, this arrangement exposes consumers to the full brunt of market risks while shielding producers from competition.
“This structure enables producers to have it both ways — passing risks to consumers while insulating themselves from market realities,” he said.
Doherty, an investment professional and civic advocate who contested the 2023 Lagos State governorship election under the PDP, urged the National Assembly to exercise its oversight powers to ensure transparency and protect citizens from exploitative fiscal measures.
He concluded by stressing that any policy on fuel pricing must be carefully designed to balance national revenue interests with the welfare of ordinary Nigerians. “Policies of this magnitude,” he said, “must be fair, transparent, and rooted in empathy for the people whose lives they will most affect.”
