President Bola Tinubu has approved the introduction of a 15 per cent ad-valorem import duty on petrol and diesel entering Nigeria, a policy move the government says is aimed at protecting local refineries and stabilising the downstream petroleum market.
The new directive, contained in a letter dated October 21, 2025, and made public on Wednesday, October 30, was addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
It mandates the immediate enforcement of the tariff under what the administration has described as a “market-responsive import tariff framework.”
According to the letter, the measure is intended to discourage excessive reliance on imported refined petroleum products and to encourage the growth of domestic refining capacity. Government officials believe the policy will create a level playing field for locally refined products, particularly as facilities such as the Dangote Refinery and other modular refineries ramp up operations.
However, economic analysts have warned that the new tariff could lead to a rise in pump prices of petrol and diesel in the short term, as importers pass on additional costs to consumers. With fuel prices already fluctuating under the deregulated regime, there are fears that the import duty may further strain household budgets and increase transportation and production costs.
Industry experts, while welcoming the protection for local refiners, have urged the government to accompany the policy with stronger measures to ensure transparency, competition, and efficiency in the domestic refining sector.
The Tinubu administration has consistently argued that its market reforms, including subsidy removal and the liberalisation of the downstream sector, are necessary to attract private investment and ensure long-term energy security.
The new import duty marks another significant shift in Nigeria’s petroleum policy, signaling the government’s determination to transition from being a major importer of refined products to achieving energy self-sufficiency.
