Nigerians To Pay Extra N200 per Litre of Petrol, Expert Alert on New Pump Price
- Nigerians are bracing up for another round of petrol price hike following the decision by President Tinubu to impose a 15% tax on fuel import
- The move, which has been supported by Femi Otedola, Muda Yusuf, has also drawn criticism from other experts
- FIRS Executive Chairman Zacch Adedeji defended the new policy, describing it as corrective, not revenue-driven
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.
Nigerians are bracing for another round of economic hardship following President Bola Tinubu’s approval of a 15% import duty on petrol and diesel
A move analysts, industry players say could push pump prices up by N100 to N200 per litre and trigger widespread price increases across transport, food, electricity, and rent.
Source: UGC
The tariff, announced in a letter dated October 21, 2025, and signed by Damilotun Aderemi, Private Secretary to the President, will take effect 30 days after official notification.
The government said the tariff aims to protect local refineries, notably the Dangote Refinery, and promote domestic fuel production.
Critics, however, say the timing is poorly planned given rising prices, naira depreciation, and stagnant wages.
According to the federal government, under the policy, the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will apply the duty to the Cost, Insurance, and Freight (CIF) value of imported fuel.
FIRS Executive Chairman Zacch Adedeji defended the policy as “corrective, not revenue-driven,” emphasising transparency and digital monitoring.
He said Lagos pump prices will remain around N964.72 per litre ($0.62), below regional averages in Senegal ($1.76), Côte d’Ivoire ($1.52), and Ghana ($1.37).
Experts quote new fuel price
Izuchukwu Clement Igbanugo, founder of ACPAE Consulting and former Head of Research at Financial Derivatives Company (FDC), called the move “ill-timed and premature,” Tribune reports
Igbanugo said:
“We have repeatedly failed in policy sequencing due to impatience. “Why rush this? Nigeria should first achieve self-sufficiency in fuel production before imposing restrictions. Protectionism must be strategic, not reactive.”
“Gasoline and diesel are the oxygen of economic life in Nigeria. “This policy, though well-intentioned, may suffocate struggling families and small businesses.”
He warned the tariff could push pump prices to between N1,045 and N1,145 per litre, intensifying the cost-of-living crisis.
Igbanugo noted:
“Nigeria already has the highest inflation among OPEC countriesover 20 per cent and households will bear a disproportionate burden.”
Source: Twitter
Also, Akinjide Adeosun, Chairman and CEO of St. Racheal, suggested banning fuel importation entirely while incentivising local refining.
He said:
“Petrol pricing drives inflation. Discounts to local refineries or innovative models could lower prices while supporting domestic production.”
As the 30-day countdown begins, Nigerians face the prospect of higher fuel costs and the cascading effects on inflation and everyday living in Africa’s largest oil-producing nation.
Otedola praises Tinubu
Earlier, Legit.ng reported that Femi Otedola and members of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have shared their opinions on President Bola Ahmed Tinubu’s decision to impose a 15 per cent import tariff on petrol and diesel.
Otedola commended the move as a bold and decisive step.
According to him, the policy represents a crucial move towards safeguarding local industries that have made substantial investments in domestic production and refining capacity.
Source: Legit.ng
