- The PENGASSAN President said suspending the 15% fuel import duty prevented an immediate spike in pump prices.
- He added that removing the duty protected consumers and stabilised the strained domestic energy market.
President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, applauded the Federal Government for suspending the planned 15 per cent import duty on fuel products. He said the decision came at a crucial time. In his view, it shielded Nigerians from sharp price increases while supporting the country’s fragile production capacity.
During an interview with ARISE NEWS, Osifo explained that the outcome resulted from internal engagement rather than street protests. Many Nigerians expect unions always to mobilise publicly, he noted. Even so, he stressed that quiet, strategic discussions often deliver major wins long before any public demonstration becomes necessary.
Osifo outlined the likely consequences of the proposed duty. Nigeria currently produces only about 40 per cent of the fuel it consumes, while the remaining 60 per cent comes from imports. Adding a 15 per cent charge to this imported volume, he warned, would have triggered another rise in pump prices. Such an increase, he said, would have exposed Nigerians to yet another round of unavoidable pressure.
Regarding domestic supply, he acknowledged the value of the Dangote Refinery. The facility has boosted local production; however, national output still meets only 35-40 per cent of total demand. With this gap in mind, he argued that any additional charges would have placed more weight on consumers already under strain.
Osifo also addressed the confusion surrounding the movement of fuel within free trade zones. Companies operating in these zones do not pay import duties until their products enter the domestic market, a rule that created initial uncertainty. The government later clarified that duties apply once products leave the free trade zone. Imposing such charges now, he said, would only deepen the burden on households facing rising living costs.
He criticised the government for failing to fully assess the distinct nature of the energy sector before proposing the duty. Energy, he explained, differs sharply from goods such as sugar or cement. It requires long-term planning, heavy investment, and policies based on economic reality rather than assumptions.
Osifo also raised concerns about pension administration in the oil and gas industry. Several companies managed their own pension systems before broader reforms took effect; yet, some still fail to meet their obligations to retirees. Stakeholders have begun addressing these gaps, and a communiqué will be issued next week. He assured workers that the union will continue to engage pension managers to protect retirees across the sector.