(DDM) — President Bola Ahmed Tinubu has approved the implementation of a 15 percent ad-valorem import duty on petrol and diesel imported into Nigeria, a major policy shift aimed at protecting domestic refineries and ensuring long-term stability in the nation’s downstream oil sector.
Diaspora Digital Media (DDM) gathered that the new import tariff is part of the federal government’s broader economic reform agenda, designed to encourage local refining, reduce foreign dependence, and create a competitive energy market that supports sustainable industrial growth.
The decision, according to top government officials, aligns with Tinubu’s Renewed Hope energy strategy, which seeks to promote value addition within Nigeria’s oil and gas ecosystem, while discouraging heavy reliance on imported refined products.
Under the new policy, importers of petrol and diesel will now pay a 15 percent duty based on the value of their cargo, a move analysts believe will make locally refined products more competitive once refineries like Dangote Refinery and Port Harcourt Refinery ramp up full production.
DDM learned that the approval followed recommendations from the Federal Ministry of Finance, the Nigeria Customs Service, and the Federal Ministry of Petroleum Resources, after months of stakeholder consultations.
Government sources revealed that the tariff will serve as both a revenue-generation measure and a strategic tool to stimulate the use of locally produced petroleum products, in line with the Energy Transition and Industrial Policy framework.
Experts, however, warn that the policy could lead to temporary price adjustments in the market, especially for independent importers who rely heavily on foreign-sourced fuel.
Energy economist Dr. Bala Zakka told DDM that the move is “a double-edged sword,” noting that while it will encourage refinery utilization, it may also raise short-term pump prices if importers pass the extra cost to consumers.
He added that the success of the policy will depend on local refinery capacity and supply consistency, urging the government to ensure that refineries across the country are operating optimally before fully enforcing the tariff.
Industry insiders said the 15 percent import duty represents a shift from Nigeria’s former zero-tariff policy, which was designed to cushion importers following the 2023 fuel subsidy removal and the liberalization of the petroleum downstream sector.
By reintroducing the tariff, the Tinubu administration hopes to level the playing field between importers and domestic producers, while protecting investments in Nigeria’s multibillion-dollar refining projects.
A senior customs official told DDM that “the policy is also aimed at boosting government revenue, encouraging refinery patronage, and discouraging unnecessary importation once local production stabilizes.”
Economic observers note that the policy complements recent efforts by the Nigerian National Petroleum Company Limited (NNPCL) and the Dangote Group, which are expected to meet most of Nigeria’s domestic fuel demand by 2025.
The development comes amid ongoing reforms in Nigeria’s energy sector, including plans to review petroleum import licenses, expand modular refining capacity, and strengthen monitoring of fuel quality standards nationwide.
As of October 2025, Nigeria still imports a significant volume of refined petroleum products despite having one of Africa’s largest crude oil outputs, underscoring the need for policy instruments that promote self-sufficiency.
If fully implemented, the 15 percent import tariff could reshape Nigeria’s downstream dynamics, positioning the country to retain more value within its borders while reducing foreign exchange pressure and stimulating industrial growth.
