President Bola Tinubu has approved a 15 percent ad-valorem import duty on diesel and premium motor spirit (PMS), commonly known as petrol.
The approval was confirmed in an official letter dated October 21, 2025, and signed by Damilotun Aderemi, the President’s Private Secretary. The letter was addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
According to the document, the decision followed a formal request from the FIRS to apply the 15 percent duty on the cost, insurance, and freight (CIF) value of petroleum imports. The measure is aimed at aligning import costs with domestic market realities and boosting government revenue from fuel importation.
Sources within the presidency say the new policy could significantly affect pump prices nationwide. Based on current import figures, the additional duty may raise the retail price of a litre of petrol by about N99.72.
Industry analysts warn that the move could trigger fresh inflationary pressure and worsen Nigeria’s already high cost of living. However, government officials insist that the policy is part of a broader fiscal reform strategy designed to stabilize the economy and encourage local refining.
The Federal Government has been seeking new revenue sources since the removal of the fuel subsidy in mid-2023. The introduction of this import duty is expected to generate billions in additional income while discouraging excessive fuel importation.
Although the approval has not yet been publicly gazetted, implementation directives have reportedly been issued to the FIRS and the NMDPRA for immediate enforcement.
Economic experts have advised the government to combine the new policy with measures that protect low-income households and support small businesses affected by rising energy costs.
As of press time, the presidency has not issued an official statement explaining when the new duty will take effect or how it will impact domestic fuel marketers.
Nigeria currently depends heavily on imported refined petroleum products due to low domestic refining capacity, making fuel pricing highly sensitive to global market shifts and government tariffs