Abuja — President Bola Tinubu has approved the implementation of a 15 per cent ad-valorem import duty on petrol and diesel imported into Nigeria — a move aimed at protecting domestic refineries and ensuring greater stability in the nation’s downstream oil sector.
In a directive dated October 21, 2025, and made public on Wednesday, the President instructed the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to begin immediate enforcement of the tariff. The measure forms part of a new “market-responsive import tariff framework.”
The letter, signed by the President’s Private Secretary, Damilotun Aderemi, confirmed Tinubu’s approval of a proposal submitted by FIRS Chairman Zacch Adedeji. The plan introduces a 15 per cent duty on the cost, insurance, and freight (CIF) value of imported petrol and diesel — intended to reflect market realities and encourage local production.
Adedeji explained that the initiative supports the Renewed Hope Agenda, focusing on energy security, domestic refining, and economic stability.
“The core objective of this initiative is to operationalise crude transactions in local currency, strengthen refining capacity, and ensure a stable, affordable fuel supply across the country,” Adedeji noted.
He warned that the price gap between locally refined products and imported fuel has created market distortions and price volatility, undermining the competitiveness of emerging local refineries.
“While local refining of petrol has increased and diesel sufficiency has been achieved, price instability persists, largely due to the misalignment between local refiners and marketers,” he added.
The FIRS boss further highlighted that import parity pricing often falls below cost-recovery levels for local refiners — a situation worsened by fluctuations in foreign exchange and freight costs.
According to Adedeji, the government must balance its dual responsibility to protect both consumers and local producers while fostering fair competition and cost recovery in the downstream sector.
“The new tariff structure will prevent duty-free imports from undercutting local refiners and promote a level playing field for all market participants,” he said.
Projections in the presidential approval note suggest that the new import duty could increase petrol’s landing cost by about ₦99.72 per litre. Despite the adjustment, the estimated pump price in Lagos would remain around ₦964.72 per litre ($0.62) — still below regional averages such as Senegal ($1.76/litre), Côte d’Ivoire ($1.52/litre), and Ghana ($1.37/litre).
The policy aligns with Nigeria’s broader drive to reduce dependence on imported petroleum products and boost domestic refining output.
The 650,000-barrels-per-day Dangote Refinery in Lagos has commenced the production of diesel and aviation fuel, while modular refineries in Edo, Rivers, and Imo States have begun small-scale petrol refining.
However, despite these developments, imported petrol still accounts for about 67 per cent of Nigeria’s total fuel consumption.
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