President Bola Ahmed Tinubu has approved a 15 per cent import duty on petrol and diesel, a move aimed at boosting local refining capacity and reducing Nigeria’s dependence on imported fuel.
The directive, announced by government sources this week, is part of a broader plan to protect domestic refineries, encourage local production, and generate additional revenue for the federal government.
Key Details of the Policy
* Imported petrol and diesel will now attract a 15% tariff, increasing the cost for importers.
* Analysts warn that the new duty may translate into higher pump prices for consumers and businesses.
* The government says the measure is intended to strengthen local refineries and reduce foreign exchange outflow.
Reasons Behind the Move
Nigeria continues to rely heavily on imported fuel despite recent additions to local refining capacity. Between January and April 2025, the Nigerian National Petroleum Company (NNPC) and oil marketers reportedly spent over ₦5.5 trillion on imported petrol and diesel.
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The tariff is expected to encourage marketers to source fuel from domestic refineries, including new facilities such as the Dangote Petroleum Refinery, while also generating revenue for the government.
Potential Implications
While the move could support local industry, it may also lead to:
* Higher fuel prices: The increased import cost could be passed on to consumers.
* Impact on businesses: Transport and logistics sectors may face higher operating costs.
* Market adjustments: Importers may shift strategies, potentially affecting supply dynamics.
Government officials emphasize that the success of the policy will depend on the performance of local refineries and their ability to meet domestic demand.
The Coming Days
The new tariff marks a significant policy shift, aiming to balance local industry growth with economic stability. Nigerians will be watching closely to see if the measure reduces fuel imports, strengthens domestic refineries, and maintains supply stability across the country.
