By Mary Onyia
In a decisive policy shift aimed at protecting local refiners and strengthening Nigeria’s energy independence, the Federal Government has introduced a 15% import tariff on petrol and fuel Government has introduced a 15% import tariff on petrol and fuel entering the country. Until now, imported fuel had en joyed duty-free status—a practice critics say stifled the growth of domestic refining.
President Bola Tinubu, through a directive dated October 21, 2025, and signed on Wednesday, ordered the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to commence immediate implementation of the new tariff regime. The directive, conveyed via a circular signed by the President’s private secretary, Dmilotun Adeyemi, forms part of the administration’s drive to establish a market-responsive import tariff framework.
According to the presidency, the move seeks to bridge the price gap between locally refined fuel and imported products. For years, cheaper imports have undercut local refineries, discouraging investment and production growth in Nigeria’s downstream sector.
Industry analysts have applauded the decision, describing it as a long-overdue step toward building a fair and competitive energy market. They believe the policy will encourage domestic production, reduce Nigeria’s dependence on imported fuel, and stimulate expansion across existing refineries.
The 15% import duty is, however, expected to raise the landing cost of petrol, reportedly by as much as ₦99.72 per litre. Experts caution that while this could lead to short-term price adjustments at the pump, the long-term benefits will include job creation, improved energy security, and greater national value retention.
Among the major beneficiaries of the new policy are local operators such as Dangote Refinery, which is expanding its current 650,000 barrels-per-day capacity to 1.4 million barrels per day, and several modular refineries in Edo, Rivers, and Imo States already producing petrol at varying scales.
Overall, the new tariff marks a turning point in Nigeria’s downstream petroleum policy—signaling the government’s commitment to fostering a sustainable refining industry capable of meeting the nation’s fuel needs and driving economic transformation.