Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
President Bola Ahmed Tinubu has approved the introduction of a 15% ad-valorem import duty on petrol and diesel imported into Nigeria. The move is part of the federal government’s effort to strengthen domestic refining operations and promote long-term stability in the downstream oil market.
The directive, dated October 21, 2025, and disclosed on Wednesday, mandates both the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to begin immediate enforcement of the new tariff structure.
According to the official communication signed by the President’s Private Secretary, Damilotun Aderemi, the approval followed a proposal from FIRS Chairman Zacch Adedeji, who argued that the tariff adjustment was necessary to reflect realistic market dynamics and encourage domestic fuel production.
Adedeji noted that the 15% duty—calculated on the Cost, Insurance, and Freight (CIF) value of imported petroleum products—forms part of the government’s “market-responsive import tariff framework.” He explained that the policy aligns with Tinubu’s “Renewed Hope Agenda” aimed at ensuring energy security and economic resilience.
“The goal is to encourage crude transactions in local currency, enhance local refining capacity, and maintain a stable and affordable fuel supply across the country,” Adedeji stated.
The FIRS boss also highlighted the persistent instability in fuel pricing, which he attributed to disparities between locally refined prices and import benchmarks. He warned that this imbalance continues to threaten the financial sustainability of Nigeria’s emerging refineries, especially amid foreign exchange volatility and high freight costs.
Adedeji further emphasized that the government’s role is twofold: to safeguard both consumers and local producers from unfair market practices, while ensuring refiners can recover their costs and attract more investment into the sector.
He explained that the new duty framework will prevent duty-free fuel imports from undercutting local producers, helping to establish a level playing field across the downstream value chain.
Projections accompanying the presidential approval suggest that the 15% tariff could increase the landing cost of petrol by roughly ₦99.72 per litre, bringing retail prices in Lagos to an estimated ₦964.72 per litre ($0.62). Despite this, prices would still remain well below those in several West African countries, including Senegal ($1.76), Côte d’Ivoire ($1.52), and Ghana ($1.37) per litre.
The new policy supports Nigeria’s ongoing drive to reduce its heavy dependence on fuel imports and expand local refining capacity.
The 650,000 barrels-per-day Dangote Refinery in Lagos has already begun production of diesel and aviation fuel, while smaller modular refineries in Edo, Rivers, and Imo States are gradually scaling up petrol output.
Nonetheless, imported petrol still supplies about 67% of the nation’s total fuel consumption—a gap the federal government aims to close through this tariff reform and increased support for domestic refineries.
