Nigeria Approves 15% Import Duty on Petrol, Diesel; Price Hike Looms President Bola Tinubu has formally approved a new 15 per cent ad-valorem import duty on petrol and diesel, a policy directive aimed at bolstering Nigeria’s local refining capacity but set to increase pump prices for consumers.
Nigeria Approves 15% Import Duty on Petrol, Diesel; Price Hike Looms President Bola Tinubu has formally approved a new 15 per cent ad-valorem import duty on petrol and diesel, a policy directive aimed at bolstering Nigeria’s local refining capacity but set to increase pump prices for consumers.
The approval, detailed in a letter dated October 21, 2025, and made public on October 30, was sent to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for immediate implementation. Why the New Tariff? The policy was based on a proposal by FIRS Chairman Zacch Adedeji as part of the administration’s “Renewed Hope Agenda.” The primary goals are to: Protect Local Refineries: Create a “level playing field” for domestic producers, like the new Dangote Refinery and various modular refineries, who are currently being undercut by cheaper, duty-free imports. Stabilize the Market: Address price instability caused by fluctuations in foreign exchange and freight costs, which hurt local refiners. Strengthen the Economy: Promote the use of local currency for crude transactions and ensure a stable, affordable supply of petroleum products. Impact on Consumers The new 15% duty, applied to the Cost, Insurance, and Freight (CIF) value of imported fuel, is expected to directly impact consumers. Projected Price Hike: The duty is estimated to increase the landing cost of petrol by approximately N99.72 per litre. New Estimated Price: This could push the pump price in Lagos to around N964.72 per litre (\$0.62). The government noted that even with this increase, Nigeria’s fuel prices would remain significantly lower than regional neighbours such as Ghana (\$1.37/litre) and Senegal (\$1.76/litre). The National Context This policy shift comes as Nigeria attempts to end its heavy reliance on imported fuel. While the 650,000 bpd Dangote Refinery and smaller modular refineries have begun production, imports still account for up to 67 per cent of the nation’s petrol demand. The new tariff is designed to protect these growing domestic investments. Would you like me to rewrite this article as a script for a short news video?
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