TINUBU SLAMS 15% TARIFF ON PETROL & DIESEL IMPORTS TO BOOST LOCAL REFINING
GREATRIBUNETVNEWS–IN a major policy shift, President Bola Ahmed Tinubu has approved a 15% ad-valorem import tariff on Premium Motor Spirit (PMS) and Automotive Gas Oil (Diesel) to protect local refiners and enhance energy security. The decision, endorsed on 21 October 2025, follows a joint proposal by the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The tariff aims to:
– Safeguard investments in domestic refining operations
– Stabilise fuel prices
– Ensure a competitive pricing environment
– Promote local production and job creation
At current rates, the tariff adds approximately ₦99.72 per litre, bringing the estimated Lagos pump price to ₦694.72 per litre ($0.62)—still below regional averages. This move underscores the government’s commitment to a market-responsive tariff framework and energy security.
Government authorities have clarified that the measure is not revenue-driven but corrective, aimed at aligning import costs with domestic realities while maintaining affordability for consumers. Funds generated will be paid into a designated Federal Government revenue account under FIRS supervision, with end-to-end verification by NMDPRA before cargo clearance. The Nigeria Customs Service (NCS) will provide implementation and monitoring support.
The policy derives its legal authority from Sections 71 and 72 of the Petroleum Industry Act (PIA), which empower the NMDPRA to issue regulations that promote economic development and public service obligations. The Presidency has directed that the tariff be gazetted under Section 3(4) of the PIA for full legal effect. A 30-day transition window has also been approved to allow importers to adjust to the new policy for cargoes already in transit.
The introduction of this tariff framework is consistent with President Tinubu’s Renewed Hope Agenda, which prioritises sustainable economic growth, energy self-sufficiency, and domestic industrial expansion. This bold step reflects the administration’s commitment to building a resilient energy sector, reducing foreign exchange exposure, and promoting long-term price stability in the downstream market.
In his handwritten approval, President Tinubu wrote: “Approved as prayed for implementation immediately.”
The Renewed Hope Global Secretariat lauds this decisive action as a forward-looking reform that reinforces Nigeria’s march toward complete refining independence and a stronger, more stable energy economy.
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