The presidency has explained that the recently introduced 15% import duty on petrol and diesel was designed to make these imported products less competitive and encourage local refining.
It stated that the policy will also boost domestic capacity and ensure that Nigeria’s oil wealth translates directly into national prosperity.
This disclosure is contained in a statement issued by the Special Adviser to the President on Media and Public Communication, Sunday Dare, on Friday, October 31, 2025.
Dare stated that this will reverse the disturbing trend of Nigeria’s heavy reliance on imported petroleum products despite being a leading crude oil producer and conserve foreign exchange.
Prices will moderate
The presidential spokesman noted that with this policy, the federal government is shifting the market to favour local refineries such as Dangote and other modular plants.
He pointed out that the increase in local refining and supply will help in the moderation of prices as well as expand jobs, investment and industrial activity.
Dare in the statement said, ‘’It’s no longer news that President Bola Ahmed Tinubu has approved a 15 per cent import duty on petrol and diesel — a bold and strategic move aimed at reshaping Nigeria’s energy landscape.
‘’For years, the nation has depended heavily on imported fuel despite being a leading crude oil producer, draining foreign exchange and exporting jobs that should have been created at home.
‘’This new policy is designed to reverse that trend by encouraging local refining, boosting domestic capacity, and ensuring that Nigeria’s oil wealth translates directly into national prosperity.
‘’By making imported fuel less competitive, government is tilting the market in favour of local refineries such as Dangote and other modular plants, laying the groundwork for a self-sustaining and resilient energy sector.
‘’As local refining ramps up and supply strengthens, prices are expected to moderate while jobs, investment, and industrial activity expand.
‘’This policy is therefore not a burden, but a bridge — from dependence to independence, from vulnerability to strength.’’
What you should know
Nairametrics had earlier reported that President Bola Tinubu had approved a 15% ad-valorem import duty on diesel and premium motor spirit (PMS), commonly known as petrol.
The approval was contained in a letter dated October 21, 2025, where Damilotun Aderemi, the Private Secretary to the President, conveyed the directive to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
According to the letter, the decision followed a request by the FIRS seeking the president’s consent to apply a 15 per cent duty on the cost, insurance, and freight (CIF) value of imported petrol and diesel to align import costs with domestic realities.
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.
The FIRS Chairman, Zacch Adedeji, in his memo to the President, explained that the measure was part of ongoing reforms to boost local refining, ensure price stability, and strengthen the naira-based oil economy in line with the administration’s Renewed Hope Agenda for energy security and fiscal sustainability.
