Nigerians will pay an additional amount of about N1tn (N973.6bn) annually on petrol imports following the Federal Government’s planned introduction of a 15 per cent import tariff on Premium Motor Spirit (petrol), a price analysis conducted by media powerhouses.
According to a petrol import trend report obtained from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, reviewed by news correspondents on Tuesday, 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, as stated in the presidential approval letter for the 15% tariff, the amount that would be spent as tariff for the 26.75 million litres would be about N2.67bn daily.
When computed over a full year, this adds up to a staggering N973.64bn, which Nigerians will ultimately bear through higher pump prices once the policy is implemented. This amount, while representing additional revenue for government coffers, will translate to a direct increase in fuel expenses for households, transporters, and businesses nationwide.
President Bola Tinubu’s approval of a 15 per cent import policy on PMS and diesel has stirred widespread concern across the oil and gas sector, with operators warning it could raise petrol prices, worsen inflation, and increase import costs, even as the government insists the policy aims to boost local refining and generate revenue.
The President’s approval was conveyed in 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 the application of a 15 per cent duty on the cost, insurance, and freight value of imported petrol and diesel to align import costs with domestic market realities.
Adedeji, in his memo to the President, explained that the measure formed part of ongoing fiscal and energy reforms designed to strengthen the naira-based oil economy, ensure price stability, and accelerate the nation’s transition toward local refining capacity in line with the administration’s Renewed Hope Agenda for energy security and economic sustainability.
He also advised the government to ensure transparency by creating a designated Federal Government revenue account managed by the Nigeria Revenue Service, with verification and clearance oversight by the NMDPRA.
“At current CIF (Cost, Insurance, and Freight) levels, this represents an increment of approximately N99.72 per litre, which nudges imported landed costs towards local cost recovery without choking supply or inflating consumer prices beyond sustainable thresholds.
“The core objective of this initiative is to operationalise crude transactions in local currency, strengthen local refining capacity, and ensure a stable, affordable supply of petroleum products across Nigeria,” Adedeji stated.
The FIRS boss noted that 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.
He argued that the new tariff framework would discourage duty-free fuel imports from undercutting domestic producers and foster a fair and competitive downstream environment. He also warned that the current misalignment between locally refined products and import parity pricing has created instability in the market.
“While domestic refining of petrol has begun to increase and diesel sufficiency has been achieved, price instability persists, partly due to the misalignment between local refiners and marketers,” he wrote. The new policy takes effect after a 30-day transition period expected to end on November 21, 2025.
Dissenting voices
In response to the development, dissenting voices from industry experts and petroleum marketers have continued to grow louder, with many questioning the timing and potential impact of the 15 per cent import tariff.
The Independent Petroleum Marketers Association of Nigeria on Tuesday expressed reservations over the newly approved 15 per cent import tariff on petrol and diesel, describing it as inconsistent with the spirit of market deregulation.
Speaking in an interview with news correspondent, the National Publicity Secretary of IPMAN, Chinedu Ukadike, said independent marketers were not opposed to Tinubu’s directive but faulted the policy’s design, which he argued undermines the principles of a free and competitive market.
“Independent marketers don’t have any problem with the President’s directive, but the only issue is that because of policymakers, the policy doesn’t follow the spirit of deregulation,” Ukadike said.
“Once you liberalise the market and then start to favour a certain section of the industry against others, it means you are putting the cart before the horse. The liberalisation was meant to ensure a free market driven by a willing buyer, willing seller arrangement. The policy should not be an impediment for those who want to import to challenge the local industry.”
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.
“The government should rather encourage local refineries by giving them crude and reducing taxes for local refiners so that they can lower their prices. The important thing is the price war between refineries and importers. One thing I know is that there is no way domestic products will be cheaper, and marketers will still decide to import. There is no need to put a tariff on importation because they would know importing is not lucrative and would source products locally. So we must do everything to boost our market and solve issues. The government has to allow domestic refiners and importers to compete without government-induced favouritism,” he advised.
According to Ukadike, the natural dynamics of market forces would make imports unattractive once local production becomes cheaper. “There is no need to put a tariff on importation because once domestic products are cheaper, marketers will naturally source locally. The government must allow domestic refiners and importers to compete freely without government-induced restrictions,” he explained.
He warned that any artificial increase in fuel prices would further drive inflation, especially ahead of the Yuletide season when demand for petrol typically rises.
“The most important element of market forces is a price drop. Any addition in pricing will lead to inflation, especially now that Christmas is approaching and more people will be travelling. There must be no shortage of products, and the government must ensure local refining, distribution, and collaboration with stakeholders are in full gear,” Ukadike added.
The Chief Executive Officer of PetroleumPrice.ng, Jeremiah Olatide, described the newly approved 15 per cent 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.
