Tinubu Approves 15% Import Duty on Petrol, Diesel to Protect Local Refineries

Tinubu Approves 15% Import Duty on Petrol, Diesel to Protect Local Refineries
The policy was described as a “market-responsive import tariff framework
Projections in the letter indicate that the new 15 per cent import duty could raise the landing cost of petrol by about ₦99.72 per litre

President Bola Tinubu has approved the introduction of a 15 per cent ad-valorem import duty on petrol and diesel imports into Nigeria, in a move aimed at protecting local refineries and stabilising the downstream petroleum market.

Eko Hot Blog reports that the approval was contained in a letter dated October 21, 2025, and addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

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The directive, signed by Damilotun Aderemi, the President’s Private Secretary, was made public on October 30, 2025.

According to the letter, the decision followed a proposal by the Executive Chairman of the FIRS, Zacch Adedeji, who noted that the duty was necessary to address market distortions and ensure fair competition between importers and local refiners.

The policy, described as a “market-responsive import tariff framework,” seeks to align import parity pricing with domestic production costs and prevent imported products from undercutting locally refined fuels.

Adedeji warned that the current pricing gap between imported fuel and locally refined products has destabilised the market and threatened investment in domestic refining.

Tinubu Approves 15% Import Duty on Petrol, Diesel to Protect 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 stated.

He added that the government’s responsibility was 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.”

Projections in the letter indicate that the new 15 per cent import duty could raise the landing cost of petrol by about ₦99.72 per litre. Despite this, the estimated pump price in Lagos is expected to average around ₦964.72 per litre ($0.62), still below regional averages in Senegal ($1.76), Côte d’Ivoire ($1.52), and Ghana ($1.37).

The move comes as Nigeria intensifies efforts to cut dependence on imported petroleum products and expand domestic refining capacity.

The 650,000-barrel-per-day Dangote Refinery in Lagos has already begun producing diesel and aviation fuel, while modular refineries in Edo, Rivers, and Imo states have started small-scale petrol refining.

Despite these advances, petrol imports still account for about 67 per cent of national demand, underscoring the need for sustained local production and pricing reforms.