President Bola Tinubu has approved the implementation of a 15 per cent ad-valorem import duty on petrol and diesel brought into Nigeria — a move aimed at protecting local refineries and stabilising the downstream oil market.
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 immediately commence enforcement of the new tariff.
The policy, described as a “market-responsive import tariff framework,” was based on a proposal submitted by FIRS Chairman Zacch Adedeji and endorsed by the President’s private secretary, Damilotun Aderemi.
According to Adedeji, the duty will be applied on the cost, insurance, and freight (CIF) value of imported petrol and diesel, aligning fuel pricing with market realities while encouraging local refining.
“The core objective of this initiative is to operationalise crude transactions in local currency, strengthen refining capacity, and ensure stable, affordable petroleum supply nationwide,” Adedeji stated.
The FIRS boss warned that the gap between locally refined fuel prices and import benchmarks had contributed to market instability.
He noted that although domestic refining has improved and diesel sufficiency has been achieved, volatility persists due to “misalignment between local refiners and marketers.”
Adedeji added that the import parity pricing model often undercuts cost recovery for Nigerian refiners — especially amid forex and freight fluctuations — threatening the viability of emerging producers like Dangote Refinery and other modular plants.
“Government has a twofold duty: to protect consumers and domestic producers from unfair pricing and collusion, while ensuring a level playing field that attracts new investments,” he said.
Under the new framework, the 15 per cent import duty is projected to raise the landing cost of petrol by about ₦99.72 per litre, bringing imported fuel prices closer to local cost-recovery levels.
Despite the adjustment, estimated Lagos pump prices are expected to remain around ₦964.72 per litre ($0.62) — still far below regional averages in Senegal ($1.76), Côte d’Ivoire ($1.52), and Ghana ($1.37).
The directive forms part of the administration’s push to reduce Nigeria’s heavy reliance on imported petroleum products and boost local refining capacity.
Currently, imported fuel accounts for about 67 per cent of national consumption, even as the 650,000-barrels-per-day Dangote Refinery and several modular refineries in Edo, Rivers, and Imo States expand production.
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