The Federal Government says the tariff aims to stabilise Nigeria’s downstream oil market and support domestic refiners such as Dangote Refinery.
President Bola Ahmed Tinubu has approved a 15 per cent ad-valorem import duty on petrol and diesel imported into Nigeria, in a move designed to strengthen the nation’s local refining capacity and reduce market distortions in the downstream oil sector.
The directive, disclosed in a presidential letter dated October 21, 2025, and addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), mandates immediate implementation of the new tariff system.
Signed by Tinubu’s Private Secretary, Damilotun Aderemi, the approval followed a proposal by the Executive Chairman of FIRS, Dr. Zacch Adedeji, who described the measure as part of ongoing fiscal reforms under the Renewed Hope Agenda.
“This initiative aims to operationalise crude transactions in local currency, strengthen refining capacity, and ensure a stable, affordable fuel supply,” Adedeji stated in his memo.
Policy to Boost Refining and Price Stability
According to the proposal, the tariff will apply to the Cost, Insurance and Freight (CIF) value of imported petroleum products. Adedeji noted that while local refining including output from Dangote Petroleum Refinery and modular refineries in Edo, Rivers, and Imo States has improved, petrol imports still account for about 67% of national demand.
He warned that the gap between import parity pricing and local production costs has created instability and discouraged investment.
“The government’s responsibility is to protect both consumers and domestic producers from unfair pricing while ensuring a competitive market,” Adedeji said.
Impact on Fuel Prices
The new duty is projected to raise the landing cost of petrol by roughly ₦99.72 per litre, pushing Lagos pump prices to an estimated ₦964.72 per litre ($0.62) still lower than regional averages in Ghana ($1.37), Côte d’Ivoire ($1.52), and Senegal ($1.76).
Officials say the goal is not to inflate prices but to align import costs with local production, protect refinery investments, and encourage the use of the naira in crude transactions.
The policy marks another major step in Nigeria’s effort to reduce dependence on fuel imports and promote self-sufficiency in the oil sector.
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