President Bola Ahmed Tinubu has approved a 15 percent ad-valorem import duty on diesel and premium motor spirit (PMS), commonly known as petrol.
The directive, conveyed in a letter dated October 21, 2025, and signed by Damilotun Aderemi, Private Secretary to the President, was sent to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
According to the correspondence, the decision followed a request from the FIRS seeking presidential consent to apply a 15% duty on the cost, insurance, and freight (CIF) value of imported fuel a move aimed at aligning import costs with domestic realities.
With this approval, the pump price of petrol could rise by approximately ₦99.72 per litre.
NNPCL Begins Comprehensive Refinery Review
Following the policy shift, the Nigerian National Petroleum Company Limited (NNPCL) has announced a comprehensive review of the nation’s three petroleum refineries to accelerate their revival.
In an update shared on X (formerly Twitter), NNPCL Group Chief Executive Officer, Bayo Ojulari, revealed that the company is exploring multiple strategies including partnerships with technical equity investors to “high-grade or repurpose” the facilities.
“The NNPCL remains optimistic that the refineries will operate efficiently despite current setbacks,” Ojulari stated in a post titled ‘Update on Our Refineries’.
Despite repeated turnaround maintenance efforts and an estimated $3 billion investment, Nigeria’s refineries have remained mostly dormant. The Port Harcourt refinery’s 60,000-barrel-per-day section briefly came online before shutting down again, while the Warri refinery remains inactive and the Kaduna refinery is yet to restart operations.
Nigeria’s Soaring Fuel Import Bill
Data from the National Bureau of Statistics (NBS) reveals that Nigeria spent a staggering ₦4 trillion on fuel imports in just the first half of 2025 — ₦1.76 trillion in Q1 and ₦2.3 trillion in Q2.
For context, the country recorded ₦15.4 trillion in fuel import bills throughout 2024, straining foreign reserves and exacerbating naira volatility.
Notably, Nigeria imported ₦208.76 billion worth of petrol from ECOWAS countries in Q2 2025, underscoring the growing importance of regional trade routes even as domestic refining projects, such as the Dangote Refinery, ramp up operations.
In a significant shift, July 2025 marked the first time Nigeria imported more crude oil from the United States than it exported, signalling a reversal in the historical trade balance between the two nations.
The new 15% import duty signals the government’s effort to boost local refining capacity and reduce fuel import dependency. However, the immediate impact on pump prices and inflation could deepen economic pressures for consumers already grappling with rising energy cost.
Credit:Nairametrics
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