President Bola Ahmed Tinubu has approved the implementation of a 15% ad-valorem import duty on premium motor spirit (PMS), commonly known as petrol, as well as diesel.
This policy shift, aimed at aligning fuel import costs with market realities and boosting government revenue, is expected to significantly impact pump prices across Nigeria.
The directive was communicated via a letter dated October 21, 2025, signed by Damilotun Aderemi, the President’s Private Secretary, and addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The decision follows a recommendation by the FIRS to impose the duty based on the cost, insurance, and freight (CIF) value of imported petroleum products.
Industry analysts predict that this policy could lead to an estimated ₦99.72 per litre increase in petrol pump prices, further fueling debates around fuel pricing and subsidy removal in the country.