Local refiners like Dangote and modular plants will benefit from a new 15% import duty on petrol and diesel.
The government expects the move to protect domestic producers, strengthen energy security, and promote self-sufficiency.
Protection For Local Refiners
In a confidential memo dated October 10, 2025, chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji proposed the tariff to President Tinubu.
Consequently, the President approved it on October 24 and instructed immediate implementation.
Importers must pay 15% on the total import value of fuel.
The government will deposit payments into a federal revenue account, while the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will verify payments before releasing any cargo.
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Market Impact And Benefits
Initially, the Crude Oil Refinery Owners Association of Nigeria (CORAN) urged a 25% tariff, arguing imported fuel undercut local prices.
After consultations, the government reduced the rate to 15% to maintain affordability and market stability.
Officials emphasised that the duty will align import costs with domestic production, protect investors, prevent dumping, and ensure fair competition.
At current prices, the tariff adds about ₦99.72 per litre, yet Lagos pump prices remain below regional averages.
Meanwhile, the Dangote Refinery, with 650,000-barrel daily capacity, will benefit most, stabilising the domestic market and advancing Nigeria toward fuel independence.
