President Bola Tinubu has officially approved a 15 percent ad-valorem import duty on Premium Motor Spirit (PMS, commonly referred to as petrol) and diesel imports into Nigeria. (The Guardian Nigeria)
Key details
The directive was communicated in a letter dated 21 October 2025 from the President’s Private Secretary, Damilotun Aderemi, addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). (The Guardian Nigeria)
The duty is calculated on the Cost, Insurance and Freight (CIF) value of imported fuel. (saharareporters.com)
Based on current pricing, analysts estimate the import duty could raise the cost per litre of petrol by about ₦99.72. (The Guardian Nigeria)
The move is described by the government as aimed at reinforcing national energy security, protecting domestic refining capacity, stabilising the downstream petroleum market, and aligning import costs with domestic realities. (saharareporters.com)
Implications
Fuel retailers and importers may pass the additional cost to consumers, likely leading to further increases in pump prices of petrol and diesel.
Domestic refiners could gain a competitive edge, as higher import duties may shift more supply sourcing to local production. A report highlighted that the measure may advantage the Dangote Refinery in Lagos by curtailing independent fuel imports. (saharareporters.com)
The measure arrives amid broader reforms in Nigeria’s fuel and tax regime, including a previously announced 5 % fuel surcharge on fossil fuel sales — though that surcharge relates to domestic consumption rather than import duties. (Businessday NG)
Reception & concerns
Stakeholders in the petroleum and transport sectors warn the move could exacerbate the existing fuel-cost burden for businesses and consumers already facing inflation and high energy prices.
Observers also note the timing is sensitive: with subsidy removal earlier and supply-chain challenges ongoing, additional costs may trigger public or industrial unrest.
