President Bola Tinubu has approved a 15% import duty on petrol and diesel, a move expected to raise the landed cost of imported fuel and potentially lift pump prices nationwide. The decision, confirmed in a letter from the presidency, is aimed at protecting local refiners and cutting reliance on imported products.
A memo from Federal Inland Revenue Service (FIRS) chairman Zacch Adedeji says the 15% duty will apply to the cost, insurance, and freight (CIF) value of imported petrol and diesel. The proposal, endorsed by Tinubu and communicated to agencies in a letter signed by his private secretary, Damilotun Aderemi, is dated October 21, 2025.
“Duty up, pumps jump.”
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Adedeji said the policy advances the Renewed Hope Agenda on energy security and price stability. The goal is to settle crude transactions in local currency, strengthen domestic refining, and ensure steady, affordable supply. He warned that gaps between locally refined prices and import-parity benchmarks have fueled volatility and discouraged private investment in refining.
Government projections attached to the approval indicate the 15% duty could add about ₦99.72 per litre to petrol’s landing cost. At current CIF levels, officials estimate Lagos pump prices would sit around ₦964.72 per litre (about $0.62), which they say remains below regional averages in Senegal, Côte d’Ivoire, and Ghana.
What we Know
Officials insist the move is not intended to hike prices, but to create fair competition between importers and domestic plants such as Dangote Refinery, which has begun producing diesel and aviation fuel. “Duty-free fuel imports have been undermining local refineries. This new tariff will promote a level playing field and encourage sustainable operations,” Adedeji wrote.
Facts
The Nigerian National Petroleum Company Limited (NNPCL) says the tariff aligns with efforts to revive state-owned refineries. In an internal note titled “Update on Our Refineries,” Group CEO Bayo Ojulari said NNPCL is exploring partnerships with technical equity investors to high-grade or repurpose facilities and remains optimistic about efficient operations despite current setbacks.
The 650,000 bpd Dangote Refinery in Lagos, along with modular plants in Edo, Rivers, and Imo, is expected to narrow the supply gap as capacity ramps up. Imported petrol still meets about 67% of domestic demand, a dependence the government says must end to achieve energy self-sufficiency.
