By: Sunday Ameh
President Bola Tinubu has approved the introduction of a 15 per cent ad-valorem import duty on petrol and diesel, a policy aimed at boosting domestic refining and stabilising the downstream petroleum market.
The directive, contained in a letter dated October 21 and made public on Thursday, was addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Signed by the President’s Private Secretary, Damilotun Aderemi, the memo conveyed Tinubu’s approval following a proposal from FIRS Chairman, Zacch Adedeji.
According to the document, the duty will apply to the cost, insurance and freight (CIF) value of imported fuel, aligning import costs with domestic market realities and protecting emerging local refiners.
Adedeji, in his recommendation to the President, said the policy forms part of ongoing fiscal reforms to strengthen Nigeria’s naira-based energy economy and promote the Renewed Hope Agenda on energy security.
He noted that the absence of duty has allowed import-parity pricing to undercut local producers, creating market instability despite recent gains in domestic refining.
“While production capacity is improving and diesel sufficiency has been achieved, market distortions persist because locally refined fuel cannot compete against duty-free imports,” he said.
Projections accompanying the proposal indicate that the 15% tariff may increase petrol landing cost by about ₦99.72 per litre, pushing Lagos pump prices to an estimated ₦964.72 per litre. However, government officials insist the figure remains below fuel prices in several West African countries.
The policy comes as Nigeria intensifies efforts to reduce dependence on fuel imports. The 650,000-barrel-per-day Dangote Refinery has begun producing diesel and aviation fuel, while modular refineries in Edo, Rivers and Imo states have commenced limited petrol production. Despite these developments, imported petrol still supplies roughly 67% of national demand.
Government officials say the new tariff aims to strike a balance between protecting consumers, incentivising local refining, and preventing unfair pricing practices by importers.
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