A 15% ad-valorem import tax on gasoline and diesel imports into Nigeria has been approved by President Bola Tinubu.
Although the effort is expected to increase pump costs, its goals are to safeguard regional refineries and stabilize the downstream market.
Tinubu instructed the Federal Inland Revenue Service and the Nigerian Midstream and Downstream Petroleum Regulatory Authority to immediately implement the tariff as part of what the government referred to as a “market-responsive import tariff framework” in a letter dated October 21, 2025, which was made public on October 30, 2025.
The letter, which our correspondent received on Wednesday and was signed by his private secretary, Damilotun Aderemi, expressed the President’s acceptance of a suggestion made by Zacch Adedeji, the Executive Chairman of the FIRS.
In order to bring import costs into line with domestic market realities, the proposal called for the implementation of a 15% tariff on the cost, insurance, and freight value of imported gasoline and diesel.
In his message to the President, Adedeji clarified that the action was a component of ongoing reforms to support local refining, guarantee price stability, and fortify the naira-based oil economy in accordance with the administration’s Renewed Hope Agenda for fiscal sustainability and energy security.
The initiative’s main goals are to “operationalize crude transactions in local currency, strengthen local refining capacity, and ensure a stable, affordable supply of petroleum products across Nigeria,” Adedeji said.
The head of FIRS further cautioned that market instability has been caused by the current mismatch between locally refined goods and import parity prices.
“Price instability persists, partly due to the misalignment between local refiners and marketers, even though domestic petrol refining has started to increase and diesel sufficiency has been achieved,” he said.
He pointed out that import parity pricing, which serves as the standard for setting pump prices, frequently falls short of local manufacturers’ cost recovery levels, especially during swings in freight and foreign currencies, placing pressure on newly established domestic refineries.
The government’s duty, according to Adedeji, 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.”
He maintained that the new tariff structure will promote a fair and competitive downstream environment and deter duty-free gasoline imports from undercutting domestic manufacturers.
The 15% import tariff could raise the landing cost of gasoline by an estimated N99.72 per litre, according to estimations in the letter.
“This represents an increase of roughly 99.72 per litre at current CIF levels, which pushes imported landed costs toward local cost-recovery without restricting supply or raising consumer prices above sustainable thresholds.” The anticipated Lagos pump costs would still be far lower than regional averages like Senegal ($1.76 per litre), Cote d’Ivoire ($1.52 per litre), and Ghana ($1.37 per litre), even with this adjustment. They would still be around N964.72 per litre ($0.62).
The strategy is implemented as Nigeria steps up its attempts to increase domestic refining and lessen its reliance on imported petroleum products.
While modular refineries in the states of Edo, Rivers, and Imo have begun small-scale petrol refining, the 650,000 barrels-per-day Dangote Refinery in Lagos has begun producing diesel and aviation fuel.
But even with these improvements, up to 67% of the country’s gasoline needs are still met by imports.
