President Bola Tinubu has approved a 15% ad valorem import levy on fuel and premium motor spirit (PMS), generally known as petrol.
Damilotun Aderemi, the president’s private secretary, communicated Tinubu’s consent to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in a letter dated October 21, 2025, which TheCable obtained.
Tinubu granted the approval following FIRS’ proposal to implement a 15% duty on cost, insurance, and goods (CIF) to align import costs with domestic reality.
The president also asked the NMDPRA to establish suitable policy guidelines, ensuring that local manufacturing takes precedence over the issuance of import licences.
He also instructed a periodic evaluation of the tariff rate and its continued necessity, including provisions for scaling or sunset measures as domestic refining capacity grows, under the supervision of the implementation committee on crude and refined product sales in naira.
Zacch Adedeji, chairman of FIRS, explained the implementation procedure in the request letter to the president, stating that import duties are not revenue-driven.
He further stated that duty payments will be made to a designated federal government of Nigeria revenue account managed by the Nigeria Revenue Service (NRS) and validated by the NMDPRA prior to discharge approval.
Adedeji said implementation will take effect after a 30-day transition period from the date of official notification.
According to the letter, the implementation of the import duty will increase a litre of petrol by an estimated N99.72 kobo.
“Even with this adjustment, estimated Lagos pump prices would remain in the range of N964.72 per litre ($0.62), still significantly below regional averages such as Senegal ($1.76 per litre), Cote d’Ivoire ($1.52 per litre), and Ghana ($1.37 per litre),” the letter reads.
“The tariff is not revenue-driven but corrective, aimed at aligning import costs with domestic realities while preserving affordability.
“Implementation would commence after a 30-day transition window, allowing importers to adjust cargoes already in transit and ensuring a smooth rollout without market disruption.
“Sections 71 and 72 of the Petroleum Industry Act (PIA) provide the legal basis for the proposed import tariff. Section 71 (a) and (b) empowers the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to issue Regulations imposing public service obligations on licensees in relation to matters which include security of supply, economic development, and the achievement of wider economic policy objectives.
“Section 72 went further to authorise NMDPRA to provide for the recovery of any additional costs incurred in complying with the public service obligations through a public service levy, which may be imposed on customers, provided that it would be in the wider public interest.
“Public service obligations” are defined under section 318 of the PIA to mean: specific obligations imposed by the Authority on licensees in relation to security of supply, social service, economic development, environmental protection or the use of indigenous materials.
“Accordingly, Your Excellency can achieve this by giving policy directives to NMDPRA under section 3(4) of the PIA to implement the 15 per cent (15%) import tariff on Premium Motor Spirit (PMS) and Diesel, which shall be published in the Federal Government gazette.
“In line with the above, Your Excellency may wish to note that operationalisation will be straightforward and transparent.”
Adedeji noted that end-to-end digital verification will be linked to NMDPRA discharge clearance to ensure no cargo is released without proof of payment.
“Customs and NMDPRA will update import templates, supported by a public compliance notice to minimise speculation and rumor-driven volatility,” he said.
“A 30-day transition period will be observed to allow market participants to adjust cargoes already in transit.”
Adedeji said the duty will accelerate Nigeria’s path toward fuel self-sufficiency, protect consumers and investors alike, and stabilise the downstream petroleum market.
