Federal Government Implements 0.5% Levy on Nigeria's Fuel Wholesalers
The Federal Government of Nigeria has introduced a 0.5% levy on the wholesale price of petroleum products and natural gas, as mandated by the Midstream and Downstream Petroleum Operations Regulations, 2025. This levy, along with an additional 0.5% for the Gas Infrastructure Fund, totals 1% and will be collected by suppliers for the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Analysts caution that these costs may be transferred to consumers, potentially raising petrol prices.
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The Federal Government of Nigeria has enforced a 0.5% levy on the wholesale price of petroleum products and natural gas as part of the Midstream and Downstream Petroleum Operations Regulations, 2025. Suppliers must collect and remit this levy at wholesale points as part of their operational compliance.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will use the funds for its Authority Fund, which is sourced from the levy. Furthermore, an additional 0.5% levy for the Midstream and Downstream Gas Infrastructure Fund is also required, bringing total obligations to 1%.
Failure to comply may result in administrative penalties of 10% per month on unpaid levies and potential suspension of operating licenses. Analysts warn that the costs may be passed on to consumers, leading to increased petrol prices.
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