President Bola Tinubu has approved the immediate introduction of a 15 per cent ad-valorem import duty on imported petrol and diesel into Nigeria.
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According to Tribune Online, the move effective immediately following the circulation of the presidential letter on October 30, 2025 is aimed at protecting emerging domestic refineries and stabilising the downstream petroleum market, although it is widely expected to trigger an increase in pump prices.
The directive was conveyed in a letter dated October 21, 2025, signed by the President’s Private Secretary, Damilotun Aderemi, and addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The approval followed a proposal from FIRS Executive Chairman, Zacch Adedeji.
Adedeji’s memo argued that the new tariff, which applies to the cost, insurance, and freight (CIF) value of imported fuel, is necessary to align import costs with domestic market realities under the administration’s Renewed Hope Agenda.
The FIRS boss stated that 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.”
The Chairman warned that the existing gap between the pricing of locally refined products and import parity pricing has caused instability.
He noted that while domestic refining capacity is increasing, often resulting in diesel self-sufficiency, fluctuations in foreign exchange and freight rates mean import parity pricing frequently falls below the cost recovery levels for local producers.
Adedeji argued that the government’s responsibility is now “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.”
The new tariff is designed to prevent duty-free imports from undercutting domestic output.
Projections contained in the official letter suggest the 15 per cent duty could increase the landing cost of petrol by approximately N99.72 per litre.
Even with this projected rise, landed costs for imported fuel would still leave the estimated pump price in Lagos around N964.72 per litre ($0.62), which the memo stresses is still significantly lower than average pump prices in neighboring countries like Senegal ($1.76) and Ghana ($1.37).
This policy shift coincides with Nigeria’s aggressive push to reduce reliance on imported fuel.
Major facilities like the 650,000 barrels-per-day Dangote Refinery have begun producing diesel and aviation fuel, and modular refineries in several states have commenced small-scale petrol production.
However, the report noted that despite these advances, imported petrol still accounts for up to 67 per cent of the nation’s total demand.
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