TINUBU APPROVES 15% IMPORT DUTY ON PETROL, DIESEL
Read Time:2 Minute, 50 Second
HOTJIST NEWS
President Bola Tinubu has sanctioned the implementation of a 15 percent ad-valorem import duty on petrol and diesel imports into Nigeria.
This initiative aims to safeguard domestic refineries and stabilize the downstream market; however, it is anticipated to increase fuel prices at the pump.
In correspondence dated October 21, 2025, which was publicly disclosed on October 30, 2025, and addressed to the Federal Inland Revenue Service and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Tinubu instructed the immediate enactment of the tariff as part of what the government referred to as a “market-responsive import tariff framework. ”
The letter, endorsed by his Private Secretary, Damilotun Aderemi, and acquired by our correspondent on Wednesday, communicated the President’s endorsement following a proposal by the Executive Chairman of the FIRS, Zacch Adedeji.
The proposal sought the application of a 15 per cent duty on the cost, insurance and freight value of imported petrol and diesel to align import costs with domestic market realities.
Adedeji, in his memo to the President, explained that the measure was part of ongoing reforms to boost local refining, ensure price stability, and strengthen the naira-based oil economy in line with the administration’s Renewed Hope Agenda for energy security and fiscal sustainability.
“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.
The FIRS boss also warned that the current misalignment between locally refined products and import parity pricing has created instability in the market.
“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 wrote.
He observed that import parity pricing—the standard for establishing pump prices—frequently falls short of cost recovery thresholds for local manufacturers, especially during fluctuations in foreign exchange and freight rates, thereby exerting pressure on emerging domestic refineries.
Adedeji further stated that the government‘s obligation was now “dual: to safeguard consumers and local producers from unfair pricing practices and collusion, while ensuring equitable conditions for refiners to recoup costs and attract investments. “
He contended that the new tariff structure would deter duty-free fuel imports from undermining domestic manufacturers and promote a just and competitive downstream landscape.
According to estimates included in the correspondence, the 15 percent import duty could elevate the landing cost of petrol by approximately N99.72 per litre.
“At current CIF levels, this represents an increment of approximately 99.72 per litre, which nudges imported landed costs toward local cost-recovery without choking supply or inflating consumer prices beyond sustainable thresholds. Even with this adjustment, estimated Lagos pump prices would remain in the range of N964.72 per litre ($0.62), still significantly below regional averages such as Senegal ($1.76 per litre), Cote d’Ivoire ($1.52 per litre), and Ghana ($1.37 per litre).”
The policy emerges as Nigeria amplifies initiatives to diminish reliance on imported petroleum derivatives and enhance local refining capabilities.
The 650,000 barrels-per-day Dangote Refinery in Lagos has initiated the production of diesel and aviation fuel, whereas modular refineries in Edo, Rivers, and Imo states have begun limited-scale petrol refining.
Nevertheless, in spite of these advancements, petrol imports continue to constitute approximately 67 percent of national demand.
Happy
0 %
Sad
0 %
Excited
0 %
Sleepy
0 %
Angry
0 %
Surprise
0 %
0
0