President Tinubu
By Iyunade Grace
President Bola Tinubu has approved a 15% import duty on petrol and diesel, a move aimed at protecting local refineries and promoting energy security. The decision, conveyed in a letter dated October 21, 2025, signed by the President’s Private Secretary, Damilotun Aderemi, and addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), is expected to increase the landing cost of petrol by approximately N99.72 per liter.
The policy is designed to align import costs with domestic realities, encourage local production, and ensure a stable supply of petroleum products. According to the FIRS Chairman, Zacch Adedeji, the new tariff framework will prevent duty-free fuel imports from undermining local refineries and promote a fair, competitive downstream sector. The government has emphasized that the policy is not primarily designed to raise revenue but to correct market distortions that make locally refined products less competitive than imported fuel.
The implementation of the import duty is expected to benefit local refineries, such as the Dangote Refinery, which has begun producing diesel and aviation fuel. The refinery’s production capacity and the government’s efforts to promote local refining are expected to reduce Nigeria’s dependence on imported petroleum products. However, the policy has raised concerns among stakeholders, who argue that the country’s refining capacity remains insufficient to support the policy without disrupting supply and inflating prices.
The government has assured that the policy will be monitored and adjusted as necessary to ensure that it achieves its objectives without harming consumers. The FIRS has stated that payments from the new import duty will be made into a designated Federal Government account, with verification by the NMDPRA before clearance. The government has also directed the NMDPRA to issue appropriate regulations and take local production into account before issuing import licenses.
The estimated pump price of petrol in Lagos is expected to be around N964.72 per liter ($0.62), still significantly below regional averages such as Senegal ($1.76 per liter), Côte d’Ivoire ($1.52 per liter), and Ghana ($1.37 per liter). The policy is part of the government’s efforts to promote energy security, stabilize the downstream petroleum market, and ensure fair competition between importers and local refineries.
