President Bola Tinubu has approved the introduction of a 15 per cent ad-valorem import duty on petrol and diesel imported into Nigeria.
According to the government, the policy aims to protect local refineries, stabilize the downstream sector, and promote fair market competition — though it may result in higher pump prices.
The directive, contained in a letter dated October 21, 2025, and made public on October 30, was addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Signed by Tinubu’s Private Secretary, Damilotun Aderemi, the letter approved the new tariff following a proposal by FIRS Chairman Zacch Adedeji.
The proposal recommended applying a 15 per cent duty on the cost, insurance, and freight (CIF) value of imported petrol and diesel to align import prices with domestic market conditions.
Adedeji explained in his memo that the policy forms part of ongoing reforms to enhance local refining, ensure price stability, and strengthen Nigeria’s oil-based economy in line with the Renewed Hope Agenda for energy security and fiscal sustainability.
“The primary goal is to promote crude transactions in local currency, expand domestic refining capacity, and guarantee a steady and affordable fuel supply nationwide,” Adedeji stated.
He warned that the current gap between locally refined products and import parity pricing has destabilized the market.
“Even as domestic petrol production increases and diesel self-sufficiency is achieved, price instability persists due to misalignment between refiners and marketers,” he noted.
Adedeji emphasized that the government’s dual responsibility is to protect both consumers and producers from unfair market practices while ensuring a fair environment for refiners to recover costs and attract investment.
The new tariff is expected to discourage duty-free imports that undercut local producers and foster a more balanced downstream market.
According to projections in the letter, the 15 per cent duty could raise the landing cost of petrol by approximately ₦99.72 per litre, pushing Lagos pump prices to around ₦964.72 per litre ($0.62)—still lower than regional averages such as Senegal ($1.76), Côte d’Ivoire ($1.52), and Ghana ($1.37).
The move comes as Nigeria steps up efforts to cut reliance on fuel imports and boost local refining capacity.
The 650,000 barrels-per-day Dangote Refinery in Lagos has begun producing diesel and aviation fuel, while modular refineries in Edo, Rivers, and Imo States have started limited petrol refining.
Despite these advancements, imported petrol still accounts for about 67 per cent of the nation’s total fuel demand.
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