President Bola Tinubu has approved a 15 per cent ad-valorem import duty on petrol and diesel imports into Nigeria. The policy, according to the presidency, is aimed at protecting local refineries, ensuring market stability, and strengthening Nigeria’s energy security framework.
Okay News reports that the directive was contained in a letter dated October 21, 2025, addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The letter, signed by the President’s Private Secretary, Damilotun Aderemi, followed a proposal submitted by the Executive Chairman of the FIRS, Zacch Adedeji.
The approved proposal sought the introduction of a 15 per cent duty on the cost, insurance, and freight (CIF) value of imported petrol and diesel. The aim is to align import costs with domestic market conditions and encourage the growth of Nigeria’s refining capacity.
Adedeji explained that the measure was part of the administration’s ongoing reforms to promote energy sustainability and fiscal balance under the 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 noted that despite progress in domestic refining—especially with diesel and aviation fuel—the market continues to experience instability due to discrepancies between import parity pricing and local production costs.
“While domestic refining of petrol has begun to increase and diesel sufficiency has been achieved, price instability persists, partly due to misalignment between local refiners and marketers,” he added.
According to projections, the new 15 per cent import duty could raise the landing cost of petrol by about ₦99.72 per litre. However, Adedeji clarified that the adjustment would still keep local pump prices below regional averages.
“At current CIF levels, this represents an increment of approximately ₦99.72 per litre, keeping Lagos pump prices within ₦964.72 per litre ($0.62)—still significantly below regional averages like Senegal ($1.76), Côte d’Ivoire ($1.52), and Ghana ($1.37),” the memo stated.
The policy is part of the federal government’s broader effort to reduce dependence on imported fuel as local refineries ramp up output. The 650,000-barrels-per-day Dangote Refinery in Lagos 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 strides, petrol imports still account for about 67 per cent of Nigeria’s total consumption. The government hopes that the new tariff structure will encourage investment, promote competition, and protect local producers from unfair pricing practices.
