President Bola Tinubu has approved the introduction of a 15 per cent ad-valorem import duty on petrol and diesel imports into Nigeria, as part of efforts to protect local refineries and stabilise the downstream petroleum market.
The new tariff, which takes immediate effect, is expected to nudge pump prices upward but aims to create a level playing field for local refiners and importers in the long term.The approval was contained in a letter dated October 21, 2025, and made public on October 30, 2025.
The letter, addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), was signed by the President’s Private Secretary, Damilotun Aderemi.
According to the document, the policy forms part of a “market-responsive import tariff framework” proposed by the Executive Chairman of the FIRS, Zacch Adedeji, and endorsed by the President.
Adedeji explained that the primary goal of the initiative is to promote local crude oil transactions in naira, strengthen domestic refining capacity, and ensure stable and affordable fuel supply across the country.
“The core objective of this initiative is to operationalise crude transactions in local currency, strengthen local refining capacity, and ensure a stable, affordable supply of petroleum products across Nigeria,” Adedeji stated.
The FIRS Chairman noted that price instability in the downstream sector persists due to the misalignment between locally refined products and import parity pricing.He added that the 15 per cent import duty would help align market prices, reduce the incentive for excessive imports, and make local refining more competitive.
“At current CIF levels, this represents an increment of approximately ₦99.72 per litre, which nudges imported landed costs toward local cost-recovery without choking supply or inflating consumer prices beyond sustainable thresholds,” he explained.
Despite the new tariff, estimated pump prices in Lagos are projected to remain around ₦964.72 per litre ($0.62), still below regional averages such as Senegal ($1.76), Côte d’Ivoire ($1.52), and Ghana ($1.37).
The government believes the measure will help consolidate Nigeria’s transition from a fuel import-dependent nation to one with sustainable domestic refining capacity.
