Nigerians will pay an additional amount of about N1tn (N973.6bn) annually on petrol imports following the Federal Government’s planned introduction of a 15 per cent import tariff on Premium Motor Spirit (petrol), a price analysis conducted
According to a petrol import trend report obtained from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, reviewed by The PUNCH on Tuesday, Nigeria imported an average of 26.75 million litres of petrol daily between January and September 2025.
At a projected import tariff rate of N99.72 per litre, as stated in the presidential approval letter for the 15% tariff, the amount that would be spent as tariff for the 26.75 million litres would be about N2.67bn daily.
When computed over a full year, this adds up to a staggering N973.64bn, which Nigerians will ultimately bear through higher pump prices once the policy is implemented. This amount, while representing additional revenue for government coffers, will translate to a direct increase in fuel expenses for households, transporters, and businesses nationwide.
President Bola Tinubu’s approval of a 15 per cent import policy on PMS and diesel has stirred widespread concern across the oil and gas sector, with operators warning it could raise petrol prices, worsen inflation, and increase import costs, even as the government insists the policy aims to boost local refining and generate revenue.
The President’s approval was conveyed in a letter signed by his Private Secretary, Damilotun Aderemi, following a proposal submitted by the Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji.
The proposal sought the application of a 15 per cent duty on the cost, insurance, and freight value of imported petrol and diesel to align import costs with domestic market realities.
Adedeji, in his memo to the President, explained that the measure formed part of ongoing fiscal and energy reforms designed to strengthen the naira-based oil economy, ensure price stability, and accelerate the nation’s transition toward local refining capacity in line with the administration’s Renewed Hope Agenda for energy security and economic sustainability.
He also advised the government to ensure transparency by creating a designated Federal Government revenue account managed by the Nigeria Revenue Service, with verification and clearance oversight by the NMDPRA.
“At current CIF (Cost, Insurance, and Freight) levels, this represents an increment of approximately N99.72 per litre, which nudges imported landed costs towards local cost recovery without choking supply or inflating consumer prices beyond sustainable thresholds.
“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,” Adedeji stated.
The FIRS boss noted that the policy is not revenue-driven but corrective, introduced to align import costs with local production realities and prevent duty-free imports from undercutting domestic refineries that are just beginning to recover.
He argued that the new tariff framework would discourage duty-free fuel imports from undercutting domestic producers and foster a fair and competitive downstream environment. He also warned that the current misalignment between locally refined products and import parity pricing has created instability in the market.
“While domestic refining of petrol has begun to increase and diesel sufficiency has been achieved, price instability persists, partly due to the misalignment between local refiners and marketers,” he wrote. The new policy takes effect after a 30-day transition period expected to end on November 21, 2025.
