President Bola Tinubu has approved a 15 per cent import duty on petrol and diesel imports in Nigeria, a decision aimed at protecting domestic refining, stabilising prices, and ensuring long-term energy security. The approval, issued through a presidential letter dated 21 October 2025, follows a recommendation from the Federal Inland Revenue Service (FIRS). The tariff, to be implemented after a 30-day transition window, will apply to the Cost, Insurance, and Freight (CIF) value of petroleum imports and is expected to increase pump prices by about ₦99.72 per litre.
According to FIRS Chairman Zacch Adedeji, the measure is not designed to raise revenue but to correct market distortions between imported and locally refined products. He argued that the misalignment between local refiners and importers has created instability in the domestic fuel market. The tariff aims to encourage transactions in local currency and enable Nigerian refiners—particularly the Dangote Refinery—to compete fairly within the deregulated downstream market.
The policy is expected to promote investment confidence in local refining, reduce dependence on imported petroleum products, and strengthen Nigeria’s fiscal stability under the Renewed Hope Agenda. However, public critics have warned that the import duty could raise retail fuel prices and disproportionately favour large domestic refiners, such as the Dangote Refinery, which currently dominates Nigeria’s local fuel supply. The government insists that the tariff will stabilise market conditions, support cost recovery for domestic producers, and move Nigeria closer to full energy independence.
