By Atoyebi Nike
President Bola Tinubu has approved a 15 per cent ad-valorem import duty on petrol and diesel imports into Nigeria to protect local refineries and stabilise the downstream market.
In a letter dated October 21, 2025, and made public on October 30, Tinubu directed the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority to immediately implement the policy under a “market-responsive import tariff framework.”
The move follows a proposal from FIRS Chairman Zacch Adedeji, who said the new tariff would align import costs with domestic market realities and strengthen local refining under the government’s Renewed Hope energy reform agenda.
Adedeji explained that the measure would “operationalise crude transactions in local currency, protect domestic refiners, and ensure a stable supply of petroleum products.” He warned that misaligned pricing between imports and locally refined products had created market instability.
The 15 per cent duty is projected to raise petrol landing costs by about ₦99.72 per litre, bringing average pump prices in Lagos to around ₦964.72 per litre still below regional averages in Senegal, Côte d’Ivoire, and Ghana.
The policy comes as Nigeria pushes to reduce fuel import dependence and promote domestic refining, with the Dangote Refinery and several modular plants now producing diesel, aviation fuel, and limited volumes of petrol. However, imports still account for nearly 67 per cent of national fuel demand.
