KEY POINTS

• Tinubu endorses 15 percent import duty to support local refining.
• Policy expected to increase landing cost of imported petrol.
• Initiative targets price stability and energy security.

President Bola Tinubu has authorised a 15 percent import duty on petrol and diesel imports into Nigeria, a measure his administration says will protect local refineries, stabilise pump prices and reinforce the downstream oil market.

The directive, outlined in a letter dated October 21 and addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, takes immediate effect. The correspondence, signed by his Private Secretary, Damilotun Aderemi, followed a proposal from the Executive Chairman of FIRS, Zacch Adedeji, which sought to establish a “market-responsive import tariff framework” to align costs with domestic market realities.

Policy designed to back local refineries

Adedeji’s memo explained that the 15 percent import duty on the cost, insurance and freight value of imported petrol and diesel was part of broader fiscal reforms. The goal, he said, was to encourage local refining, promote price stability, and strengthen Nigeria’s oil economy under the government’s Renewed Hope Agenda.

He warned that the existing misalignment between import parity pricing and local production had created instability, affecting both refiners and consumers. While domestic diesel sufficiency has been achieved and petrol refining is gradually expanding, price volatility persists due to inconsistent cost recovery levels, particularly during foreign exchange fluctuations.

Market impact of 15 percent import duty on petrol

According to Punch, government projections indicate that the new duty could increase the landing cost of imported petrol by about N99.72 per litre. Despite the rise, pump prices in Lagos are expected to hover around N964.72 per litre ($0.62), still well below regional averages recorded in Senegal, Côte d’Ivoire and Ghana.

Officials believe the new tariff will help protect domestic producers from unfair competition and deter underpriced imports from undermining local refiners. The administration expects the measure to foster a fairer, more competitive downstream environment while securing energy affordability.

The policy arrives as Nigeria accelerates efforts to reduce dependence on fuel imports. The 650,000 barrels-per-day Dangote Refinery has begun producing diesel and aviation fuel, while smaller modular refineries across Edo, Rivers and Imo states have started limited petrol output. Yet, imports still meet about 67 percent of national fuel demand, a gap the government hopes to close with policies like the 15 percent import duty on petrol.