Tinubu Approves 15% Import Duty on Petrol, Diesel, FIRS Gives Reason
- The administration of President Tinubu has approved the introduction of 15% import duty on petrol and diesel
- The decision is expected to give local refiners, especially Dangote Refinery, a market advantage
- Depot and Petroleum Products Marketers Association of Nigeria may now have to source their products locally
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
President Bola Tinubu has approved a 15% import duty on Premium Motor Spirit (PMS), also known as petrol, and Automotive Gas Oil (AGO), commonly known as diesel.
The approval, dated October 21, 2025, was conveyed by Damilotun Aderemi, the president’s private secretary, following a request by the Federal Inland Revenue Service (FIRS).
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Attorney General of the Federation were also copied.
Source: Twitter
ThisDay reports that the new duty will be applied to the cost, insurance, and freight (CIF) value of imported fuels.
Tinubu instructed the NMDPRA to develop clear guidelines for the new policy, stressing that domestic production must come first before granting import permits.
He also ordered regular evaluations of the tariff’s relevance and rate, with possible adjustments or phase-out plans as Nigeria’s local refining capacity grows, to be supervised by the implementation committee on , sales in naira.
FIRS gives reason for petrol import duty
Explaining the implementation process in the request letter to the president, Zacch Adedeji, chairman of FIRS, said import duty is not revenue-driven.
According to Adedeji, the tariff will help Nigeria achieve fuel self-sufficiency, protect consumers and investors, and stabilise the downstream petroleum sector.
He also said payments of the duty will be made into a designated federal government of Nigeria revenue account under the Nigeria Revenue Service (NRS) and verified by the NMDPRA before discharge clearance.
Adedeji said implementation will take effect after a 30-day transition period from the date of official notification.
Source: Getty Images
Implication of new petrol duty
In the letter, FIRS stated that the new import duty could raise petrol prices by about N99.72 per litre.
It, however, argued that even with this increase, pump prices in Lagos would average around N964.72 per litre ($0.62), still cheaper than in neighbouring countries like Senegal ($1.76), Côte d’Ivoire ($1.52), and Ghana ($1.37).
Cable reports that in the letter, he explained that the policy is not meant to raise revenue but to align fuel import costs with local realities while keeping prices affordable.
It further stated that a 30-day transition period will allow importers to adjust shipments already in transit, ensuring a smooth and stable rollout.
FIRS noted that the policy is backed by Sections 71 and 72 of the Petroleum Industry Act (PIA), which empower the NMDPRA to impose such tariffs to protect national energy security and promote economic growth.
The president can officially direct the NMDPRA to implement the 15% duty on petrol and diesel, which will be published in the government gazette.
To ensure transparency, all fuel imports will go through a digital verification system linked to NMDPRA clearance, preventing any cargo from being released without proof of payment.
Customs and NMDPRA will also update import guidelines and issue a public notice to prevent market speculation.
Depot owners react
Depot owners will be the ones most affected by the new tax on petrol imports.
Speaking to Legit.ng about the policy, Olufemi Adewole, executive secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), expressed surprise.
He said:
“Our members will be meeting soon to discuss the development and respond appropriately.”
NNPC increases fuel price
Earlier, Legit.ng reported that NNPC increased its petrol price to N922 per litre from N870 in Lagos.
This is higher than N890 offered by MRS, Ardova, Matrix, De Petroleum, Fatgbems, Petrocam, TotalEnergies, Pinnacle, and Mobil, selling at an average price of N890 to N920 per litre.
In Abuja, NNPC retail outlets increased petrol prices to N955 per litre.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
