Presidential Approval and Policy Framework
President Bola Tinubu has approved a 15% import duty on petrol and diesel to strengthen Nigeria’s energy security and support local refining. The policy introduces a market-responsive tariff framework and aligns with the administration’s Renewed Hope Agenda for fiscal sustainability. The Federal Inland Revenue Service (FIRS) proposed the duty, which applies to the Cost, Insurance, and Freight (CIF) value of imported fuel. The president’s private secretary, Damilotun Aderemi, signed the approval letter dated 21 October. The government plans to implement the policy after a 30-day transition period, giving importers time to adjust their logistics and avoid market disruption.
Economic Impact and Market Adjustment
FIRS Chairman Zacch Adedeji explained that the tariff could increase petrol prices by ₦99.72 per litre, bringing Lagos pump prices to around ₦964.72/litre ($0.62). He emphasized that the policy is corrective, not revenue-driven, and aims to address market distortions while supporting domestic producers. The government intends to align import costs with domestic realities, encourage crude oil transactions in Naira, boost local refining capacity, stabilize fuel prices and supply, and attract investment in Nigeria’s energy sector.
Industry Support and Regulatory Concerns
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) welcomed the policy. National President Dr. Billy Harry stated that the initiative would increase local refining, improve price stability, strengthen the Naira and foreign reserves, create jobs, and stimulate economic growth. PETROAN urged the Nigerian National Petroleum Company Limited (NNPC) to ensure crude oil availability for local refineries and called on regulators to prevent monopolistic practices. The association also encouraged fuel importers to shift their focus toward supporting domestic refineries rather than exiting the market.
Refinery Revival and Strategic Partnerships
In response to the policy, NNPC began seeking private technical partners to help revive its four dormant refineries. Group CEO Bayo Ojulari announced plans to restart operations before December to avoid fuel shortages during the festive season. This effort could transform Nigeria from a fuel importer to a net exporter and reinforce long-term energy independence.
Educational Collaboration and Industry Integration
Beyond the energy sector, PETROAN pledged to support educational development by partnering with Ignatius Ajuru University of Education. The association plans to offer industrial training opportunities, organize excursions to petroleum facilities, and help develop academic programs in petroleum marketing and energy management. This collaboration aims to bridge the gap between academia and industry, preparing students for careers in Nigeria’s evolving energy landscape.
This policy marks a significant shift in Nigeria’s energy strategy. If managed effectively, it could reduce fuel import dependence, stabilize the market, and position Nigeria as a refining hub in West Africa.
