BREAKING: Tinubu Approves 15% Import Duty on Petrol and Diesel

President Bola Tinubu has officially sanctioned a new 15 per cent import duty on Premium Motor Spirit (petrol) and diesel. This significant fiscal policy shift was communicated to key regulatory bodies in a letter dated October 21, 2025.

The directive was conveyed by the Private Secretary to the President, Damilotun Aderemi. It was sent to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

This approval comes in response to a formal request from the FIRS. The service had sought to align import costs with current domestic economic realities. The duty will be applied to the Cost, Insurance, and Freight (CIF) value of the imported fuels.

A direct consequence of this policy will be an increase in pump prices. According to the presidential communication, the import duty is estimated to add ₦99.72 to the cost of a litre of petrol.

Despite this hike, the government argues that prices will remain relatively competitive. The letter stated that the estimated pump price in Lagos would be around ₦964.72 per litre ($0.62). It noted this is still below the regional averages in Senegal, Cote d’Ivoire, and Ghana.

As detailed in the complete version, there are several key factors to consider.

President Tinubu also issued specific implementation directives. He instructed the NMDPRA to draft appropriate regulations to guide the new policy. A key provision is that local production must be prioritized before the issuance of new import licences.

The policy includes provisions for future reviews. The president directed a periodic assessment of the tariff rate and its ongoing necessity. This will include scaling or sunset measures as Nigeria’s domestic refining capacity continues to expand.

Explaining the rationale behind the move, FIRS Chairman Zacch Adedeji clarified that the import duty is not primarily intended to generate revenue. He emphasized its role in adjusting the cost structure of fuel imports.

Adedeji detailed the implementation process. Payments for the duty will be made into a designated Federal Government revenue account. This account will be under the Nigeria Revenue Service (NRS). The NMDPRA will verify payments before granting discharge clearance for fuel cargoes.

The policy is set to take effect after a 30-day transition period. This window begins from the date of official notification to all relevant stakeholders. This allows marketers and the supply chain to adjust to the new fiscal regime.