President Bola Tinubu has introduced a 15% ad-valorem import duty on petrol and diesel imports to Nigeria, aimed at protecting local refineries and stabilizing the downstream market. This decision, communicated in a letter dated October 21, 2025, and made public on October 30, could potentially raise fuel prices for consumers.
The new tariff is part of a broader strategy to enhance local refining capabilities and ensure stability in fuel prices. The duty applies to the cost, insurance, and freight (CIF) value of imported petrol and diesel, aligning import costs with domestic market conditions. It is estimated that the import duty could increase the landing cost of petrol by approximately N99.72 per litre. Despite the increase, projected pump prices in Lagos would still be below regional averages, with expected prices around N964.72 per litre ($0.62).
Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service, emphasized that the measure addresses the misalignment between locally refined products and import parity pricing, which has been causing instability in the market. The intention is to foster a fair competitive environment for local producers and discourage the influx of duty-free imports that undermine domestic refining efforts.
Nigeria continues to strive for reduced dependence on imported fuel, with local refineries like the Dangote Refinery beginning production of diesel and aviation fuel. Despite advancements, petrol imports still account for roughly 67% of national demand. This policy reflects the government’s commitment to supporting local industries while navigating the complexities of the global oil market.
