ADC Celebrates Suspension of Import Duty on Fuel
The African Democratic Congress (ADC) celebrated a recent decision by the Federal Government to suspend the controversial 15 per cent import duty on petrol and diesel. The party viewed this move as a confirmation of its earlier warnings that the levy would exacerbate the country’s economic challenges.
In a statement released in Abuja, the ADC National Publicity Secretary, Bolaji Abdullahi, highlighted that the party had previously warned the government about the potential consequences of imposing a new tariff on imported fuel. This warning came on October 31, when the ADC expressed concerns that the tax would deepen the hardship caused by subsidy removal, currency depreciation, and rising living costs.
While commending the administration for backing down, the party emphasized that the reversal once again exposed a pattern of hasty decisions followed by embarrassing U-turns.
Abdullahi stated, “As we noted in our statement reacting to the planned tariff, the ‘new levy is likely to push the pump price of petrol beyond N1,000 per litre. If this happens, life would become even more unbearable for families, commuters, transporters, farmers, and small businesses already struggling under the weight of fuel subsidy removal without social protection and currency devaluation without safeguards.”
The ADC also raised questions about why the government would consider taxing imported fuel without first ensuring local production capacity. It pointed out that these were the same reasons cited by the administration for backing down, which it described as “quite interesting.”
“What has become clear, however, is that President Tinubu is running a government of trial and error that is merely experimenting and bumbling through,” the statement noted.
Abdullahi further criticized federal agencies for issuing conflicting statements. He pointed out that while one agency claimed the policy was only postponed, another declared it “no longer in view.” This, he argued, showed a government that is confused, unsure, and dangerously working at cross purposes.
The ADC urged the administration to “realise that public office is a responsibility, not a laboratory,” and vowed to continue opposing policies that threaten citizens’ welfare.
Government Reverses Policy Decision
The ADC’s comments came just 24 hours after President Bola Tinubu suspended the 15 per cent ad-valorem duty on petrol and diesel. This policy was initially introduced to align fuel import costs with domestic market realities and encourage local refining.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority confirmed the suspension on Thursday. Its Director of Public Affairs, George Ene-Ita, stated that the levy was “no longer in view and not implementable at this time,” adding that the decision had presidential approval.
Key Takeaways from the ADC’s Statement
- The ADC praised the government for reversing the decision but criticized the lack of consistency in policy-making.
- The party warned that the import duty could have pushed petrol prices beyond N1,000 per litre, worsening the economic burden on citizens.
- The ADC questioned the government’s decision to impose the tax without first ensuring sufficient local production capacity.
- The party accused federal agencies of providing conflicting information, highlighting a lack of coordination within the administration.
- The ADC called on the government to treat public office as a serious responsibility rather than an experimental space.
Impact on Citizens and Businesses
The ADC’s concerns reflect broader anxieties among citizens and businesses about the stability of government policies. With fuel prices already high due to subsidy removal and currency depreciation, any additional taxes could have had severe consequences.
Transporters, farmers, and small businesses are particularly vulnerable to such changes. The ADC emphasized that these groups are already struggling to cope with the current economic conditions.
Future Outlook
The ADC has pledged to continue monitoring government policies and speaking out against those that threaten the well-being of citizens. The suspension of the import duty is seen as a temporary reprieve, but the party remains vigilant about future policy decisions.
As the government continues to navigate complex economic challenges, the ADC’s call for consistency and accountability is likely to resonate with many Nigerians who are weary of frequent policy shifts.