President Bola Tinubu has approved the introduction of a 15 percent import duty on petrol and diesel imports — a policy the government says will promote local refining and strengthen energy security. However, critics fear the move could push fuel prices higher.
According to the Federal Inland Revenue Service (FIRS), the new tariff will take effect after a 30-day transition period to allow importers to adjust cargoes already in transit and prevent market disruptions.
The approval was conveyed in a letter dated October 21, with reference number PRES8197/HAGF/100/71/FIRS/40/88-2/NMDPRA/2. The document was addressed to the Attorney General of the Federation, the FIRS, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The letter, titled “Introduction of a Market-Responsive Import Tariff Framework on Premium Motor Spirit (PMS) and Diesel,” was signed by Damilotun Aderemi, the President’s Private Secretary.
FIRS Chairman Zacch Adedeji, who initiated the proposal, said the 15 percent duty — applied to the Cost, Insurance, and Freight (CIF) value — aims to align import costs with domestic realities. He noted that the adjustment could raise petrol prices by about ₦99.72 per litre, though Lagos pump prices are projected to remain around ₦964.72 per litre ($0.62), still lower than prices in neighbouring countries such as Ghana, Senegal, and Côte d’Ivoire.
Adedeji emphasized that the tariff is “not revenue-driven but corrective,” designed to stabilize pricing and encourage transactions in local currency. He added that the reform supports Tinubu’s Renewed Hope Agenda by promoting local production and fiscal sustainability.
He explained that while Nigeria has achieved diesel sufficiency and domestic petrol refining is increasing, instability persists due to price misalignment between importers and local refiners.
“The government’s duty is to protect consumers and domestic producers from unfair pricing practices while ensuring a fair market that supports continued investment,” Adedeji stated.
Nonetheless, the policy has drawn criticism, particularly from commentators on social media, who allege it is intended to favor the Dangote Refinery — Nigeria’s only major operational refinery, owned by billionaire Aliko Dangote.
Despite claims by the Dangote Refinery that it can meet the country’s fuel demand, Nigeria still imports nearly half of its petrol. Regulatory disputes and market dynamics have slowed full reliance on domestic refining, even as the refinery continues to export some of its products.
Observers say Tinubu’s decision aims to prevent imported petrol from undercutting locally produced fuel, ensuring competitiveness for domestic refiners.
