President Bola Tinubu has approved the immediate introduction of a 15% ad-valorem import duty on imported petrol and diesel into Nigeria.
This approval is effective immediately upon the letter’s circulation on October 30, 2025 is intended to protect emerging domestic refineries and stabilize the downstream market, though it is widely anticipated to lead to an increase in pump prices.
In a letter dated October 21, 2025, Damilotun Aderemi, the Private Secretary to the President, formally conveyed Tinubu’s approval to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
According to the letter, the President granted the approval following a request by FIRS to impose the 15 percent duty on the cost, insurance, and freight (CIF) value of imported fuel.
The approval followed a proposal from FIRS Executive Chairman, Zacch Adedeji.
Adedeji’s memo argued that the new tariff, which applies to the cost, insurance, and freight (CIF) value of imported fuel, is necessary to align import costs with domestic market realities under the administration’s Renewed Hope Agenda.
The FIRS boss stated that 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.”
The Chairman warned that the existing gap between the pricing of locally refined products and import parity pricing has caused instability.
Adedeji argued that the government’s responsibility is now “twofold, to protect consumers and domestic producers from unfair pricing practices and collusion, while ensuring a level playing field for refiners to recover costs and attract investments.”
The new tariff is designed to prevent duty-free imports from undercutting domestic output.