Nigeria Implements 15% Import Duty on Petrol and Diesel to Support Local Refining
Nigeria's President Bola Tinubu has authorized a 15% ad-valorem import duty on petrol and diesel to enhance local refining and stabilize market prices. This policy is expected to modify pump prices and reduce reliance on imported fuel while fostering a competitive environment for domestic producers.
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President Bola Tinubu has sanctioned a 15% ad-valorem import duty on petrol and diesel imports to support local refineries and stabilize the downstream petroleum market. Effective immediately as per a directive to the Federal Inland Revenue Service and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, this tariff aims to align import costs with domestic market conditions.
The measure is projected to raise the landing cost of petrol by approximately ₦99.72 per litre without significantly increasing pump prices, which are expected to remain around ₦964.72 per litre in Lagos, below regional averages. This development comes as Nigeria seeks to reduce dependence on imports, with local refineries like the Dangote Refinery and modular refineries in various states beginning operations. However, imports still represent about 67% of Nigeria's fuel consumption, indicating ongoing challenges in achieving energy independence.
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