President Bola Tinubu has approved the introduction of a 15 per cent ad-valorem import duty on imported petrol and diesel, effective immediately, in a move aimed at protecting Nigeria’s growing domestic refining industry and stabilizing the downstream petroleum market. The policy, announced through a letter circulated on October 30, 2025, is expected to raise fuel pump prices but also strengthen local production capacity.
The directive, conveyed in a letter dated October 21 and signed by the President’s Private Secretary, Damilotun Aderemi, was addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). It follows a proposal by FIRS Executive Chairman, Zacch Adedeji, who argued that the tariff aligns with the administration’s Renewed Hope Agenda to ensure fair competition and price stability within the petroleum sector.
According to Adedeji, the 15% import duty will apply to the cost, insurance, and freight (CIF) value of imported fuel. He explained that the measure is designed to “operationalise crude transactions in local currency, strengthen local refining capacity, and guarantee a stable and affordable supply of petroleum products nationwide.” The FIRS chief emphasized that the policy seeks to protect consumers and local refiners from unfair import-driven pricing practices that distort the market.
Projections from the memo indicate that the tariff could increase the landing cost of petrol by about ₦99.72 per litre, potentially bringing the pump price in Lagos to around ₦964.72 ($0.62) per litre. Despite the increase, the government maintains that Nigerian pump prices remain significantly lower than those in neighboring countries such as Senegal ($1.76) and Ghana ($1.37).
The new policy comes as Nigeria intensifies efforts to reduce dependence on imported fuel. Large-scale operations like the 650,000-barrel-per-day Dangote Refinery have begun producing diesel and aviation fuel, while several modular refineries across the country have started limited petrol output. However, imports still account for roughly 67 per cent of national fuel consumption, underscoring the need for stronger protection of local refiners.
source: Tribune