In a move aimed at boosting local refining and increasing government revenue, the Federal Government of Nigeria has approved a 15% import tariff on Premium Motor Spirit (PMS), commonly known as petrol. The policy, set to take effect after a 30-day transition period ending November 21, 2025, is expected to significantly impact fuel costs nationwide.
According to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigeria imported an average of 26.75 million litres of petrol daily between January and September 2025. With the new tariff rate pegged at ₦99.72 per litre, the daily cost of the tariff alone is projected to be ₦2.67 billion, amounting to ₦973.6 billion annually Punch Newspapers thestar.ng marketnewsng.com.
The approval came via a presidential directive from President Bola Tinubu, following recommendations from the Federal Inland Revenue Service (FIRS). The government argues that the tariff will help align fuel import costs with local market realities and support Nigeria’s growing refining sector, which has been a key focus of recent energy reforms.
However, the financial burden of this policy will likely fall on consumers, as higher import costs are expected to translate into increased pump prices. Analysts warn that this could exacerbate inflationary pressures and strain household budgets, especially in a country where petrol is a critical commodity for transportation and power generation.
The tariff applies not only to petrol but also to diesel imports, further broadening its economic impact. While the government maintains that the policy is necessary for long-term energy sustainability, critics argue that it could deepen hardship for millions of Nigerians already grappling with rising living costs.
As the implementation date approaches, stakeholders in the downstream sector are calling for clarity on pricing mechanisms and potential mitigation strategies, including subsidies or targeted relief for vulnerable populations.
Sources: Punch Newspapers thestar.ng marketnewsng.com
