President Bola Tinubu has approved the introduction of a 15% ad-valorem import duty on petrol and diesel imports into Nigeria — a move aimed at protecting local refineries and stabilising the downstream market, though it may lead to higher pump prices.
In a letter dated October 21, 2025, and publicly reported on October 30, 2025, Tinubu directed the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to begin immediate implementation of the new tariff under a “market-responsive import tariff framework.”
The letter, signed by his Private Secretary, Damilotun Aderemi, conveyed Tinubu’s approval following a proposal by FIRS Executive Chairman, Zacch Adedeji, who recommended applying the 15% duty on the Cost, Insurance and Freight (CIF) value of imported petrol and diesel. The move, according to Adedeji, would align import costs with domestic market realities and support local production.
Adedeji explained in his memo to the President that the measure is part of the administration’s ongoing reforms to boost local refining, stabilise fuel prices, and strengthen the naira-based oil economy in line with Tinubu’s Renewed Hope Agenda.
“The core objective of this initiative is to operationalise crude transactions in local currency, strengthen local refining capacity, and ensure a stable, affordable supply of petroleum products across Nigeria,” Adedeji stated.
He added that while diesel sufficiency has been achieved and domestic refining of petrol is increasing, price instability persists due to a misalignment between local refiners and import parity pricing — often below cost recovery levels.
Adedeji further noted that the government has a dual responsibility:
“To protect consumers and domestic producers from unfair pricing practices and collusion, while ensuring a level playing field for refiners to recover costs and attract investments.”
According to projections in the letter, the 15% import duty could increase the landing cost of petrol by about ₦99.72 per litre, bringing the estimated Lagos pump price to ₦964.72 ($0.62) — still below regional averages in Senegal ($1.76), Côte d’Ivoire ($1.52), and Ghana ($1.37) per litre.
The policy comes as Nigeria intensifies efforts to reduce dependence on imported fuel and promote domestic refining. The 650,000 barrels-per-day Dangote Refinery has already begun producing diesel and aviation fuel, while modular refineries in Edo, Rivers, and Imo States have started small-scale petrol refining.
Despite these advances, petrol imports still account for about 67% of national demand, underscoring the urgency of the government’s new tariff strategy.
