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

President Bola Tinubu has approved the enforcement of a 15% ad-valorem import duty on petrol and diesel imported into Nigeria — a policy aimed at strengthening local refineries and stabilising the downstream oil market.

The directive, dated October 21, 2025, and made public on October 30, instructs the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to immediately begin implementing the tariff as part of a new “market-responsive import tariff framework.”

The letter, signed by the president’s private secretary, Damilotun Aderemi, confirmed Tinubu’s approval of a proposal submitted by FIRS Chairman, Zacch Adedeji, recommending the 15% duty on the Cost, Insurance, and Freight (CIF) value of imported petrol and diesel.

According to Adedeji, the move supports the “Renewed Hope Agenda” for energy security and economic stability, with the goal of promoting crude transactions in naira, boosting refining capacity, and ensuring a stable, affordable fuel supply.

“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 explained that while domestic refining of petrol is increasing and diesel sufficiency has been achieved, price instability persists due to misalignment between local refiners and importers.

Adedeji warned that import parity pricing — often below cost recovery for local refiners — could undermine their viability, especially amid foreign exchange volatility.

“The government has a twofold duty: to protect consumers and domestic producers from unfair pricing practices while ensuring a level playing field for refiners to recover costs and attract investment,” he said.

The presidential approval memo projects that the new 15% import duty could raise the landing cost of petrol by about ₦99.72 per litre, pushing estimated Lagos pump prices to around ₦964.72 ($0.62) per litre — still far below regional averages in Senegal ($1.76), Côte d’Ivoire ($1.52), and Ghana ($1.37).

The policy is part of Nigeria’s broader plan to reduce dependence on fuel imports and encourage domestic refining, as facilities such as the Dangote Refinery and several modular refineries in Edo, Rivers, and Imo states ramp up production.

Despite these gains, imports still account for roughly 67% of Nigeria’s total petrol consumption, underscoring the importance of policies that protect local production.

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