President Bola Tinubu has approved a 15 per cent ad‑valorem import duty on imported petrol (Premium Motor Spirit) and diesel with immediate effect.
The directive, dated October 21 2025, was addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The duty will be applied to the Cost, Insurance and Freight (CIF) value of imported fuel and is part of a market‑responsive framework designed to align import costs with domestic production realities. The government says the move aims to strengthen local refining capacity, reduce reliance on imported petroleum products, and stabilise the downstream sector.
Documents reviewed indicate that the 15 per cent tariff could add about ₦99.72 per litre to the landing cost of petrol, although officials insist that pump prices would remain below regional averages.
Industry experts have expressed concerns that the new duty may lead to higher fuel prices nationwide, given Nigeria’s continued dependence on imported refined products, despite growing local refining capacity.
The tariff may also favour domestic refineries, particularly the Dangote Refinery, which could benefit from exemptions under its Export Processing Zone status, while independent fuel importers may face increased costs.
The decision is part of the Tinubu administration’s broader energy reforms aimed at promoting local refining, protecting domestic producers, and ensuring a more secure fuel supply chain.