TINUBU APPROVES 15% IMPORT DUTY ON PETROL, DIESEL TO PROTECT LOCAL REFINERIES
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By Aishat Momoh. O.
President Bola Ahmed Tinubu has approved the implementation of a 15 per cent ad-valorem import duty on petrol and diesel imported into Nigeria — a strategic move aimed at protecting domestic refineries, stabilising the downstream oil market, and strengthening local production capacity.
The directive, dated October 21, 2025, and made public on Wednesday, was conveyed through a letter signed by Damilotun Aderemi, the President’s Private Secretary, to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The approval follows a proposal by FIRS Chairman Zacch Adedeji, who recommended the duty as part of a new “market-responsive import tariff framework.”
Adedeji explained that the initiative aligns with the Renewed Hope Agenda and is designed to promote energy security, enhance domestic refining, and ensure a stable and affordable fuel supply across the country.
“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,” Adedeji stated.
He further warned that the price disparity between locally refined fuel and imported products has led to market instability, threatening the survival of local refineries.
“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,” he noted.
The FIRS boss stressed that duty-free imports have placed local producers at a disadvantage, as imported fuels often arrive below cost-recovery levels due to foreign exchange and freight fluctuations.
The approved 15% duty, calculated on the Cost, Insurance, and Freight (CIF) value of imports, is projected to raise the landing cost of petrol by approximately ₦99.72 per litre, bringing prices closer to cost-recovery levels for domestic refiners while maintaining affordability for consumers.
Despite the adjustment, the estimated pump price in Lagos would remain around ₦964.72 per litre ($0.62) still below regional averages such as Senegal ($1.76/litre), Côte d’Ivoire ($1.52/litre), and Ghana ($1.37/litre).
Government officials say the policy is part of Nigeria’s broader efforts to reduce dependence on imported petroleum products and encourage local investment in refining.
The move comes as the 650,000-barrel-per-day Dangote Refinery begins producing diesel and aviation fuel, while modular refineries in Edo, Rivers, and Imo states are scaling up small-scale petrol refining.
However, imported petrol still accounts for about 67 per cent of Nigeria’s total consumption a gap the government hopes to close through policies that promote local refining and fair competition.
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