President Bola Tinubu has approved a 15 per cent import duty on petrol and diesel, a move aimed at protecting local refineries and stabilising Nigeria’s downstream oil market.
The new tariff, which applies to the cost, insurance, and freight value of the products, is expected to raise fuel prices slightly but support the country’s push for local refining.
In a letter dated October 21, 2025, and addressed to the Federal Inland Revenue Service and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the President directed the immediate implementation of the new duty.
The letter, signed by his Private Secretary, Damilotun Aderemi, confirmed Tinubu’s approval of a proposal from the FIRS Chairman, Zacch Adedeji, to introduce what the government called a “market-responsive import tariff framework.”
Adedeji explained that the move would help strengthen the naira, boost refining capacity, and ensure steady fuel supply.
“The core objective of this initiative is to operationalise crude transactions in local currency, strengthen local refining capacity, and ensure a stable, affordable supply of petroleum products across Nigeria,” he said.
He warned that misalignment between locally refined products and import parity pricing had created market instability.
“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,” Adedeji noted.
According to the proposal, the new tariff could raise the landing cost of petrol by about N99.72 per litre, bringing the expected pump price in Lagos to around N964.72 per litre.
Despite the possible rise, the letter stated that Nigerian fuel prices would still remain below regional averages, noting that petrol sells for about $1.76 per litre in Senegal, $1.52 in Côte d’Ivoire, and $1.37 in Ghana.
Adedeji said the duty would discourage duty-free fuel imports that undercut local producers and help create a fair, competitive market for both consumers and refiners.
He added that the government’s role was “twofold — to protect consumers and domestic producers from unfair pricing and ensure a level playing field for investors.”
The new policy comes as Nigeria pushes to reduce reliance on fuel imports. The 650,000 barrels-per-day Dangote Refinery in Lagos has begun producing diesel and aviation fuel, while smaller modular refineries in Edo, Rivers, and Imo states have also started limited petrol production.
Despite these gains, petrol imports still account for about 67 per cent of Nigeria’s total demand.
