The approval, contained in a presidential directive dated October 21, 2025, was communicated to the Federal Inland Revenue Service (FIRS), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigeria Customs Service.’

It followed a proposal from the Ministry of Finance and FIRS seeking to align Nigeria’s fuel import pricing with domestic production realities and protect local refineries.

According to government documents obtained by The Cable, the tariff will be applied on the cost, insurance, and freight (CIF) value of imported petrol and diesel. The move, the government said, aims to stabilise the downstream petroleum market, promote energy security, and ensure fair competition between importers and local refiners.

The presidency explained that the policy was part of wider reforms to strengthen domestic refining capacity and reduce reliance on imported fuel. It follows the Federal Executive Council approval of July 29, 2024, which allowed crude oil for domestic use and refined products to be traded in naira.

Officials said domestic refining, particularly at the Dangote Refinery, has begun to increase, but that instability in pricing between local refiners and importers continued to distort the market. Import parity pricing, which often determines the pump price, has remained below cost recovery levels for local producers.

According to Arise News, in the official communication, the presidency noted that “while domestic refining of petrol is gradually improving, misalignment between local refiners and marketers has led to price instability. The 15 per cent import tariff is designed to protect consumers and producers by discouraging duty-free imports that undercut domestic refiners.”

The directive also explained that the measure would prevent unfair competition, promote investment in refinery and logistics infrastructure, and ensure that local production remains viable. Payments from the new import duty are to be made into a designated Federal Government account under the FIRS, with NMDPRA responsible for verifying compliance before any shipment is released.

Sections 71 and 72 of the Petroleum Industry Act (PIA) were cited as the legal foundation for the policy. These provisions empower NMDPRA to impose regulations that promote energy security, safeguard supply, and advance broader economic goals, including through levies or tariffs considered to be in the public interest.

The implementation of the new tariff, initially proposed to begin after a 30-day transition period to allow importers to adjust, is now expected to take effect immediately following a presidential instruction. “Approved as prayed for implementation immediately,” President Tinubu reportedly wrote in the directive.

The government also directed that future import licensing must prioritise local production capacity before foreign supply is approved. Customs and NMDPRA have been instructed to update import templates, enforce digital verification for all shipments, and issue a compliance notice to prevent market speculation.

Officials say the policy is not primarily designed to raise revenue but to correct market distortions that make locally refined products less competitive than imported fuel. The presidency believes that the import tariff will help Nigeria achieve fuel self-sufficiency, stabilise supply, and attract further investment into the refining sector.

However, concerns have emerged among stakeholders in the downstream petroleum industry. Many argue that the country’s refining capacity remains insufficient to support the policy without disrupting supply and inflating prices. Nigeria still imports more than 60 per cent of its refined petroleum products, with less than 40 per cent sourced locally—mostly from the Dangote refinery and smaller modular refineries.

Industry experts warn that, while the policy could eventually encourage local refining, consumers may bear the immediate brunt of higher fuel prices. Some marketers have already projected that the new tariff could push pump prices beyond ₦1,000 per litre if the naira weakens further or international freight costs rise.