The Federal Government has approved the introduction of a 15 per cent ad-valorem import duty on petrol and diesel imports into Nigeria. The new tariff, which takes immediate effect, forms part of President Bola Tinubu’s push for a “market-responsive import tariff framework” designed to encourage local refining and stabilise fuel prices.
Presidential Approval and Implementation
According to information obtained by Akahi News, President Tinubu’s directive was contained in a letter dated October 21, 2025, addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The letter, signed by his Private Secretary, Damilotun Aderemi, approved the immediate enforcement of the 15% duty following a proposal submitted by the Executive Chairman of FIRS, Zacch Adedeji.
The proposal recommended a 15% duty on the cost, insurance, and freight (CIF) value of imported petrol and diesel to align import costs with domestic realities and strengthen local production efforts.
Rationale Behind the Tariff
In his memo to the President, Adedeji highlighted that the policy forms a key component of the administration’s Renewed Hope Agenda aimed at energy independence, fiscal discipline, and economic resilience.
He explained that the new tariff would:
- Encourage local refining of petroleum products;
- Reduce Nigeria’s foreign exchange dependence on imported fuel;
- Support naira-based oil transactions; and
- Enhance price stability within the downstream sector.
“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, as reported by Akahi News.
Addressing Market Distortions
Adedeji also noted that despite progress in domestic refining—especially with the gradual ramp-up of output from the Dangote Refinery and smaller modular refineries—market instability persists.
He attributed this to the current misalignment between locally refined products and import parity pricing, which has allowed foreign imports to undermine local competitiveness.
“While domestic refining of petrol has begun to increase and diesel sufficiency has been achieved, price instability persists, partly due to the misalignment between local refiners and marketers,” he wrote.
According to Akahi News, the import duty aims to correct this imbalance, ensuring that local producers remain competitive and the market gradually transitions toward self-sufficiency.
Implications for Consumers and the Economy
Economic analysts told Akahi News that although the policy could cause a short-term rise in petrol and diesel prices, it is a strategic move toward long-term energy stability.
They noted that a more sustainable refining ecosystem would strengthen the naira, reduce foreign exchange outflows, and create local jobs.
Furthermore, the tariff could serve as a protective buffer for domestic refiners such as Dangote and Waltersmith, enabling them to operate at full capacity and meet local demand.
With the introduction of the 15% import duty on petroleum imports, the Tinubu administration is signalling its commitment to restructuring Nigeria’s downstream petroleum market for sustainability and independence. However, stakeholders caution that transparent implementation and price monitoring will be critical to ensure the benefits reach consumers.
For detailed updates on energy policies, market reforms, and economic developments, visit Akahi News — your trusted source for verified and insightful reporting.
Follow Joseph Iyaji for more analytical reports on governance, policy, and economic trends.
🎓 Attend 2026 JAMB, Post-UTME, WAEC, and NECO GCE Tutorials
Get fully prepared with expert tutors, comprehensive study materials, and personalised academic guidance at Akahi Tutors.
📍 Located at 67, Oduduwa College Road, Off Sabo Junction, Ile-Ife.
📞 Call: 08038644328
for enrollment and accommodation reservation.
