Introduction to the 15% Import Tariff on Petrol
Nigerians are set to face an additional financial burden of approximately N973.6 billion annually due to a new 15% import tariff on Premium Motor Spirit (petrol). This decision, which has been approved by the Federal Government, is expected to increase fuel costs significantly for consumers across the country.
According to a report from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigeria imported an average of 26.75 million litres of petrol daily between January and September 2025. At a projected import tariff rate of N99.72 per litre, this would amount to about N2.67 billion in tariffs each day. Over the course of a year, this translates to a staggering N973.64 billion that will be added to the cost of fuel, ultimately borne by Nigerian households, transporters, and businesses.
The introduction of the 15% tariff comes as part of broader fiscal and energy reforms aimed at strengthening the naira-based oil economy, ensuring price stability, and promoting local refining capacity. The policy is designed to align import costs with domestic market realities and prevent duty-free imports from undercutting local refineries.
Policy Implementation and Industry Reactions
President Bola Tinubu’s approval of the 15% import tariff was conveyed through a letter signed by his Private Secretary, Damilotun Aderemi, following a proposal submitted by the Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji. The proposal sought to apply a 15% duty on the cost, insurance, and freight value of imported petrol and diesel.
Adedeji explained that the measure is part of ongoing fiscal and energy reforms intended to strengthen the naira-based oil economy, ensure price stability, and accelerate the nation’s transition toward local refining capacity. He also advised the government to create a designated Federal Government revenue account managed by the Nigeria Revenue Service, with verification and clearance oversight by the NMDPRA.
The policy is not revenue-driven but corrective, introduced to align import costs with local production realities and prevent duty-free imports from undercutting domestic refineries that are just beginning to recover. Adedeji argued that the new tariff framework would discourage duty-free fuel imports from undercutting domestic producers and foster a fair and competitive downstream environment.
Dissenting Voices and Concerns
Despite the government’s rationale, dissenting voices from industry experts and petroleum marketers have continued to grow louder, with many questioning the timing and potential impact of the 15% import tariff. The Independent Petroleum Marketers Association of Nigeria (IPMAN) expressed reservations over the newly approved 15% import tariff on petrol and diesel, describing it as inconsistent with the spirit of market deregulation.
Chinedu Ukadike, National Publicity Secretary of IPMAN, stated that independent marketers do not oppose the President’s directive but faulted the policy’s design, which he argued undermines the principles of a free and competitive market. He urged the Federal Government to focus on incentivising local refineries rather than imposing tariffs on fuel imports, noting that such measures could distort competition and discourage private participation.
Ukadike warned that any artificial increase in fuel prices would further drive inflation, especially ahead of the Yuletide season when demand for petrol typically rises. He emphasized the need for the government to allow domestic refiners and importers to compete freely without government-induced restrictions.
Economic Implications and Market Dynamics
Jeremiah Olatide, CEO of PetroleumPrice.ng, described the newly approved 15% import tariff on petrol and diesel as a double-edged policy, one that could boost government revenue but also worsen the economic hardship faced by Nigerians. He noted that while the policy represents a strategic move to shore up revenue amid fiscal constraints, it comes at a difficult time for most Nigerians.
Olatide warned that a combination of the 15% import duty and a proposed five percent surcharge could further burden consumers and distort market stability. He urged the government to adopt policies that strengthen local refining and stabilise the upstream oil sector instead.
Support from Industry Stakeholders
Despite the concerns raised, some stakeholders have commended the government’s decision. The Centre for the Promotion of Private Enterprise (CPPE) threw its weight behind the Federal Government’s newly introduced 15% import duty on refined petroleum products, describing it as a step toward reviving Nigeria’s industrial base and promoting economic self-sufficiency.
The CPPE argued that the measure represents a “strategic protectionist policy” designed to safeguard emerging domestic industries, including local refineries, while stimulating productivity, job creation, and foreign exchange savings. It stressed that protection alone would not guarantee industrial success and urged the government to complement the measure with fiscal incentives, low-cost financing, affordable and reliable energy supply, strategic infrastructure investment, and streamlined regulatory processes.
Conclusion
The implementation of the 15% import tariff on petrol marks a significant shift in Nigeria’s energy policy, with far-reaching implications for both the government and consumers. While the policy aims to support local refining and generate revenue, it has sparked debates about its impact on fuel prices, inflation, and market dynamics. As the policy takes effect, the focus will remain on how it balances the interests of domestic producers, importers, and consumers in a rapidly evolving energy landscape.