President Bola Tinubu has approved the introduction of a 15 per cent ad-valorem import duty on petrol and diesel imports into Nigeria.
The initiative is aimed at protecting local refineries and stabilising the downstream petroleum market, though it is expected to lead to an increase in pump prices.
In a letter dated October 21, 2025, and made public on October 30, 2025, the President directed the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority to immediately implement the new tariff as part of a “market-responsive import tariff framework.”
The letter, signed by his Private Secretary, Damilotun Aderemi, conveyed the President’s approval following a proposal by the Executive Chairman of the FIRS, Zacch Adedeji.
The proposal sought the application of a 15 per cent duty on the cost, insurance, and freight (CIF) value of imported petrol and diesel to align import costs with domestic market realities.
Adedeji explained in his memo to the President that the measure formed part of ongoing reforms designed to boost local refining, ensure price stability and strengthen the naira-based oil economy in line with the administration’s Renewed Hope Agenda for energy security and fiscal sustainability.
He warned that the current misalignment between locally refined products and import parity pricing had created instability in the market.
“While domestic refining of petrol has begun to increase and diesel sufficiency has been achieved, price instability persists, partly due to the misalignment between local refiners and marketers,” he said.
According to him, import parity pricing — the benchmark for determining pump prices — often falls below cost recovery levels for local producers, especially during fluctuations in foreign exchange and freight costs, thereby putting pressure on emerging domestic refineries.
Adedeji noted that the government’s responsibility was “twofold — to protect consumers and domestic producers from unfair pricing practices and collusion, while ensuring a level playing field for refiners to recover costs and attract investments.”
He further argued that the new tariff framework would discourage duty-free fuel imports from undercutting domestic producers and help create a fair and competitive downstream environment.
Projections contained in the letter indicated that the 15 per cent import duty could increase the landing cost of petrol by about ₦99.72 per litre.
The policy comes as Nigeria intensifies efforts to reduce dependence on imported petroleum products and ramp up domestic refining.
The 650,000 barrels-per-day Dangote Refinery in Lagos has commenced diesel and aviation fuel production, while modular refineries in Edo, Rivers, and Imo states have started small-scale petrol refining.
Despite these developments, petrol imports still account for about 67 per cent of national demand.