PRESIDENT Bola Tinubu has approved a 15 per cent ad-valorem import duty on petrol and diesel brought into Nigeria — a policy designed to protect domestic refineries and stabilize the downstream oil market.
In a letter dated October 21, 2025, and addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the President directed immediate implementation of the tariff as part of a new “market-responsive import tariff framework.”
The letter, signed by his Private Secretary, Damilotun Aderemi, followed a proposal from FIRS Chairman, Zacch Adedeji.
Adedeji explained that the new tariff aligns import costs with current market realities while supporting ongoing reforms aimed at boosting local refining, stabilizing pump prices, and strengthening Nigeria’s oil economy under the Renewed Hope Agenda.
He stated that the initiative’s core goal is to promote crude oil transactions in naira, enhance domestic refining capacity, and ensure affordable fuel supply across the country.
According to him, the current misalignment between import parity pricing and locally refined products has fueled price instability and put pressure on emerging refineries.
While diesel sufficiency has reportedly been achieved and local petrol production is growing, Adedeji warned that the market still suffers from unfair pricing practices that disadvantage domestic producers.
“The government’s duty is to protect consumers and local refiners from exploitative pricing while creating a level playing field for fair competition,” he noted.
Under the new framework, the 15 per cent duty applies to the cost, insurance, and freight (CIF) value of imported petrol and diesel.
Projections indicate this could raise the landing cost of petrol by about ₦99.72 per litre, bringing Lagos pump prices to an estimated ₦964.72 per litre ($0.62) — still below regional averages in countries like Senegal ($1.76), Côte d’Ivoire ($1.52), and Ghana ($1.37).
The move comes as Nigeria intensifies efforts to cut dependence on imported fuel. The 650,000-barrel-per-day Dangote Refinery in Lagos has already begun producing diesel and aviation fuel, while smaller modular refineries in Edo, Rivers, and Imo states have started limited petrol output.
Despite these advances, petrol imports still account for about 67 per cent of national consumption.