President Bola Tinubu has approved the introduction of a 15 per cent ad-valorem import duty on petrol and diesel imports into Nigeria, a move aimed at protecting local refineries and stabilising the downstream petroleum market.
The directive, contained 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 (NMDPRA), was made public on Wednesday, October 30.
Signed by the President’s Private Secretary, Damilotun Aderemi, the letter conveyed Tinubu’s approval following a proposal by the Executive Chairman of the FIRS, Dr. Zacch Adedeji, seeking to impose the tariff on the Cost, Insurance, and Freight (CIF) value of imported petrol and diesel.
According to Adedeji, the measure forms part of the administration’s ongoing fiscal and energy sector reforms designed to promote local refining, stabilise prices, and strengthen Nigeria’s oil-based economy in line with the Renewed Hope Agenda.
“The core objective of this initiative is to operationalise crude transactions in local currency, strengthen refining capacity, and ensure a stable and affordable petroleum supply nationwide,” Adedeji explained.
He noted that the absence of parity between locally refined products and imported fuel prices has created instability in the downstream sector.
“While domestic refining of petrol has begun to expand and diesel sufficiency has been achieved, price instability persists, partly due to the misalignment between local refiners and importers,” he added.
Adedeji warned that import parity pricing — which determines retail pump prices — often falls below cost recovery levels for domestic producers, especially during foreign exchange fluctuations and rising freight costs, thereby discouraging investment in local refining.
The FIRS boss further stated that the government’s role was now twofold: to protect consumers and local producers from unfair pricing while creating a level playing field for investors.
“This tariff framework will discourage duty-free imports from undercutting domestic refiners and help establish a fair and competitive downstream environment,” he said.
Projections accompanying the memo show that the 15 per cent import duty could raise the landing cost of petrol by approximately ₦99.72 per litre, pushing the Lagos pump price to around ₦964.72 per litre ($0.62) — still below regional averages such as Senegal ($1.76), Côte d’Ivoire ($1.52), and Ghana ($1.37) per litre.
The new policy aligns with the government’s drive to reduce Nigeria’s dependence on imported petroleum products. Although the 650,000-barrels-per-day Dangote Refinery and several modular refineries in Edo, Rivers, and Imo States have commenced limited production, imported petrol still accounts for about 67 per cent of national demand.
With the new import tariff, the Tinubu administration hopes to strengthen domestic refining, encourage investment in local capacity, and ensure long-term energy security and fiscal stability.
