President Bola Tinubu has approved the introduction of a 15 per cent ad valorem import duty on imported petrol and diesel, a move aimed at discouraging fuel importation and promoting domestic refining.
The new policy means imported fuel will now attract a value-based tax designed to make foreign products more expensive, thereby supporting Nigeria’s local refineries and reducing dependence on imports.
In a letter dated October 21, 2025, and made public on October 30, 2025, President Tinubu directed the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to immediately implement the tariff under a “market-responsive import tariff framework.”
The letter, signed by Damilotun Aderemi, the President’s Private Secretary, conveyed Tinubu’s approval following a proposal from the FIRS Executive Chairman, Zacch Adedeji.
Adedeji explained in his memo that the 15 per cent duty on the Cost, Insurance, and Freight (CIF) value of imported petrol and diesel was part of the government’s ongoing fiscal and energy reforms under the Renewed Hope Agenda.
According to him, the initiative is meant to strengthen Nigeria’s naira-based oil economy, stabilise prices, and encourage investments in local refining.
“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 noted that the current gap between domestic and import-parity pricing has caused market instability, particularly for local refiners who struggle to recover production costs during fluctuations in exchange rates and freight charges.
Adedeji further explained that the government’s priority is to “protect both consumers and domestic producers from unfair pricing and collusion, while ensuring a level playing field that supports cost recovery and investment growth.”
The FIRS chairman added that the new tariff would help prevent duty-free imports from undercutting Nigerian refiners and promote fair competition within the downstream sector.
According to government projections, the 15 per cent duty could raise the landing cost of petrol by approximately ₦99.72 per litre. Despite this, the expected Lagos pump price of ₦964.72 per litre ($0.62) would still remain lower than in several neighbouring countries — including Senegal ($1.76), Côte d’Ivoire ($1.52), and Ghana ($1.37).
The policy comes as Nigeria steps up efforts to achieve energy self-sufficiency. The 650,000 barrels-per-day Dangote Refinery in Lagos has begun producing diesel and aviation fuel, while several modular refineries in Edo, Rivers, and Imo States have commenced small-scale petrol refining.
However, petrol imports still make up around 67 per cent of national demand, underscoring the government’s drive to accelerate domestic refining and reduce the country’s exposure to volatile global fuel markets.
