President Bola Tinubu has approved the imposition of a 15% ad valorem import charge on fuel and diesel imports into Nigeria.
The plan aims to preserve local refineries and stabilize the downstream market, but it is expected to hike pump costs.
Tinubu directed immediate tariff implementation in a letter to the Federal Inland Revenue Service and the Nigerian Midstream and Downstream Petroleum Regulatory Authority dated October 21, 2025, and reported publicly on October 30, 2025, as part of what the government described as a “market-responsive import tariff framework.”
The letter, signed by his Private Secretary, Damilotun Aderemi, and received by our correspondent on Wednesday, expressed the President’s support of a request made by the FIRS’ Executive Chairman, Zacch Adedeji.
The proposal called for a 15% tariff on the cost, insurance, and freight value of imported petrol and diesel to align import costs with domestic market realities.
Adedeji noted in his memo to Tinubu that the step was part of ongoing measures to increase local refining, ensure price stability, and strengthen the naira-based oil economy, all of which are consistent with the administration’s Renewed Hope Agenda for energy security and fiscal sustainability.
“The core objective of this initiative is to operationalize crude transactions in local currency, strengthen local refining capacity, and ensure a stable, affordable supply of petroleum products across Nigeria,” Adedeji stated.
The FIRS boss also warned that the existing divergence between domestically refined products and import parity prices had caused market instability.
“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.
He pointed out that import parity pricing, the standard for establishing pump prices, frequently falls below cost recovery levels for local producers, especially during foreign exchange and freight changes, placing pressure on rising domestic refineries.
Adedeji further stated that the government’s role was now “twofold: to protect consumers and domestic producers from unfair pricing practices and collusion, while ensuring a level playing field for refiners to recover costs and attract investments.”
He contended that the new tariff regime will prevent duty-free fuel imports from undermining domestic producers, fostering a fair and competitive downstream environment.
According to the letter’s predictions, the 15% import charge could raise the landing cost of petrol by approximately N99.72 per liter.
“At current CIF levels, this represents an increment of approximately 99.72 per liter, which nudges imported landed costs toward local cost recovery without choking supply or inflating consumer prices beyond sustainable thresholds.
“Even with this adjustment, estimated Lagos pump prices would remain in the range of N964.72 per liter ($0.62), still significantly below regional averages such as Senegal ($1.76 per liter), Cote d’Ivoire ($1.52 per liter), and Ghana ($1.37 per liter).”
The measure comes as Nigeria steps up efforts to minimize reliance on imported petroleum products and increase domestic refining.
The Dangote Refinery in Lagos, which produces 650,000 barrels per day, has begun diesel and aviation fuel production, while modular refineries in Edo, Rivers, and Imo states have begun small-scale petrol refining.
Despite these increases, fuel imports continue to account for up to 67% of national demand.
