Keypoints:
- New 15 percent levy on petrol, diesel
- Move aims to boost domestic refining
- Prices may rise by about ₦99 per litre
NIGERIA has introduced a 15 percent import duty on petrol and diesel to curb the influx of cheaper imported fuel and promote domestic refining, according to a new directive from the federal government.
The measure, reported by Reuters, is part of a sweeping fiscal reform agenda aimed at diversifying government revenue away from oil and strengthening energy self-sufficiency. Officials said the tariff represents another decisive step in Nigeria’s shift towards a market-driven fuel economy.
Part of broader fiscal reform
This new import duty follows the removal of fuel subsidies in 2023 and the liberalisation of foreign exchange controls — both key elements in President Bola Tinubu’s reform drive. The government hopes the duty will discourage underpriced fuel imports that undermine the viability of domestic refineries.
‘The objective is to level the playing field and protect local investors who have made significant commitments to refining capacity,’ said an official from the Ministry of Finance.
Backing local refining investment
The policy is widely seen as a move to support the $20bn Dangote Refinery — Africa’s largest — which began operations recently but has struggled to compete with cheaper imported fuel sold at a loss. Located on the outskirts of Lagos, the 650,000-barrel-per-day plant is central to Nigeria’s ambition to achieve fuel self-sufficiency.
Analysts believe the new duty could stabilise the domestic market and encourage distributors to source refined products locally. However, they also warn that the measure could drive up retail fuel prices in the short term.
Consumers face higher pump prices
With petrol currently selling at about ₦928 ($0.63) per litre, government estimates suggest the new duty could raise prices by roughly ₦99 per litre. Officials argue that the short-term pain will yield long-term gains by ensuring a more stable and self-sustaining energy market.
Despite being Africa’s leading crude oil producer, Nigeria continues to import most of its refined petroleum products due to years of neglect and inefficiency at state-owned refineries.
Energy experts say the import duty signals a policy shift towards prioritising domestic refining capacity. ‘Nigeria cannot achieve real energy security without supporting its own refineries,’ said one Lagos-based analyst. ‘This move is a step in the right direction.’
The new import duty takes immediate effect, with customs officials and fuel importers already adjusting to the updated levy structure.
