Tinubu Approves 15% Import Duty on Petrol and Diesel to Protect Local Refineries, Stabilise Market
President Bola Tinubu has approved the introduction of a 15 per cent ad-valorem import duty on petrol and diesel imports into Nigeria — a move the Presidency says is aimed at protecting local refineries, stabilising the downstream market, and advancing the administration’s ongoing energy sector reforms.
While the policy is expected to strengthen domestic refining and align with the government’s “Renewed Hope” energy agenda, it will likely lead to an increase in pump prices across the country.
In a directive dated October 21, 2025, and released on Wednesday, October 30, Tinubu instructed the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to immediately begin implementing the new tariff under a “market-responsive import framework.”
The order, signed by the President’s Private Secretary, Damilotun Aderemi, followed a proposal from FIRS Chairman, Zacch Adedeji, recommending a 15 per cent duty on the Cost, Insurance, and Freight (CIF) value of imported petrol and diesel.
Adedeji explained that the new duty forms part of broader fiscal and energy reforms designed to boost local refining, enhance price stability, and strengthen Nigeria’s oil-based economy 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 fuel supply across Nigeria,” Adedeji stated in his memo to the President.
He warned that the current pricing imbalance between locally refined products and imported fuels had created distortions in the domestic market.
According to him, while local refining of petrol is growing and diesel sufficiency has been achieved, persistent price instability — driven by import parity pricing and foreign exchange volatility — continues to pressure emerging refineries.
Adedeji stressed that the government’s responsibility is now “twofold: to protect both consumers and local producers from unfair pricing practices while ensuring a level playing field that supports cost recovery and future investments.”
Under the new tariff, FIRS projects that the landing cost of petrol could rise by about ₦99.72 per litre. Even with the adjustment, however, the estimated pump price in Lagos would remain around ₦964.72 per litre ($0.62), still below regional averages such as Senegal ($1.76), Côte d’Ivoire ($1.52), and Ghana ($1.37).
The move comes as part of broader efforts to reduce Nigeria’s dependence on imported fuel and promote domestic refining. The 650,000 barrels-per-day Dangote Refinery has already begun producing diesel and aviation fuel, while smaller modular refineries in Edo, Rivers, and Imo States are producing limited volumes of petrol.
Despite these advancements, imported petrol still accounts for about 67 per cent of Nigeria’s total consumption — a gap the new import duty is intended to help close.
