Nigerians may soon face higher fuel prices as the Federal Government introduces a 15% import tariff on Premium Motor Spirit (PMS), also known as petrol. According to analysis from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the new tariff will add approximately ₦973.6 billion annually to national fuel costs. This means consumers will ultimately bear the financial burden through higher pump prices once the policy takes effect later this month.
President Bola Tinubu approved the tariff proposal to align imported fuel costs with local market realities and support Nigeria’s growing refining industry. The policy, recommended by Federal Inland Revenue Service Chairman Zacch Adedeji, aims to strengthen the naira-based oil economy and reduce dependence on fuel imports. The government insists the measure will generate more revenue, promote local refining, and stabilize fuel supply across the country.
However, industry stakeholders have expressed concern that the timing could worsen economic hardship. The Independent Petroleum Marketers Association of Nigeria (IPMAN) criticized the move, arguing it contradicts the spirit of deregulation. IPMAN’s spokesperson, Chinedu Ukadike, urged the government to focus on incentivizing local refineries instead of imposing tariffs that could raise costs for importers and consumers. He warned that such policies risk driving inflation and discouraging market competition, especially as Nigerians struggle with high living costs.
Energy experts share similar fears. Jeremiah Olatide, CEO of PetroleumPrice.ng, described the tariff as a “double-edged sword” that might boost government revenue but deepen inflationary pressures. He cautioned that Nigerians, still reeling from the 2023 fuel subsidy removal, could face further financial strain with petrol prices already around ₦900 per litre. Olatide also noted that the new tariff, coupled with a possible 5% surcharge, could worsen inflation and stall economic recovery unless carefully managed.
Despite the controversy, some stakeholders, such as the Centre for the Promotion of Private Enterprise (CPPE), have backed the government’s decision. The CPPE described the 15% petrol import tariff as a “strategic protectionist policy” to safeguard domestic refineries and stimulate industrial growth. It urged the government to pair the policy with supportive measures—like low-cost financing and reliable energy supply—to ensure that the benefits of protectionism translate into real gains for Nigerian consumers and the economy.
source: punch