A civil society group (CSO), Partners for National Economic Progress (PANEP), has criticised the Federal Government’s decision to reverse the 15 per cent tariff imposed on imported petroleum products, describing the move as a setback for Nigeria’s local refining ambition.

In a statement issued by its Co-Convener, Comrade Olamide Odumosu, the group argued that the initial tariff was a “wise and courageous” policy aligned with the Petroleum Industry Act, which seeks to free the downstream sector from years of dependence on fuel imports.

PANEP dismissed claims that Nigeria lacks sufficient refining capacity to meet domestic demand, insisting that the Dangote Refinery can not only supply the nation’s needs but also store enough product to sustain the country for 90 days in the event of disruptions. The group said fears that the tariff could trigger fuel scarcity or price hikes were “false and unfounded.”

The statement accused petroleum importers of resisting reforms that threaten their interests, alleging collusion among players in the oil supply chain, including unions and regulatory agencies.

PANEP maintained that the quality of imported products remains poor because regulators, particularly the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), have failed to enforce standards.

The group further argued that Nigeria should be moving towards banning fuel importation altogether to force import-dependent marketers to invest in refining. “They should build refineries or form cooperatives to acquire public refineries instead of holding the economy hostage,” he said.

PANEP expressed disappointment that the tariff was reversed, saying the decision contradicts President Bola Tinubu’s economic reform agenda. While acknowledging that the President acted in what he considered the public interest, Odumosu insisted that the policy shift was influenced by vested interests determined to frustrate the country’s local refining project.

Although the government has extended the implementation timeline, PANEP urged that the revised date should not go beyond the first week of January 2026. It cited the cement sector as an example of how local production can thrive once monopolistic import structures are dismantled.

The organisation called on the Federal Government to restore the 15 per cent tariff and ultimately phase out fuel importation before the end of the first quarter of 2026. According to PANEP, “Nigeria is capable, and the claim of high consumption figures is a fat lie.”

PANEP reaffirmed its commitment to supporting the government’s economic reforms but warned that progress achieved so far must not be reversed.