A new 15% import tariff on Premium Motor Spirit (petrol) approved by President Bola Tinubu could add roughly N973.6 billion to Nigerians’ annual fuel expenses, according to a detailed price review released on November 5, 2025.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority shows Nigeria imported about 26.75 million liters of petrol daily from January to September 2025. With the tariff at N99.72 per liter, this translates to an extra N2.67 billion daily, totaling N973.64 billion over a year. Consumers will likely feel this through higher pump prices, boosting government revenue but straining households, transport, and businesses.
The approval, detailed in a letter from Tinubu’s Private Secretary Damilotun Aderemi on a proposal by Federal Inland Revenue Service Chairman Zacch Adedeji, aims to match import costs with local production. Adedeji highlighted goals like enhancing naira-based oil trades, stabilizing prices, and supporting domestic refining under the Renewed Hope Agenda. The policy includes a dedicated revenue account for transparency, overseen by the Nigeria Revenue Service and NMDPRA. It takes effect after a 30-day grace period ending November 21, 2025.
Industry reactions vary. Independent Petroleum Marketers Association of Nigeria’s Chinedu Ukadike criticized it for clashing with market deregulation, urging incentives for local refiners over import barriers to foster fair competition and avoid inflation, especially during the holiday season.
PetroleumPrice.ng CEO Jeremiah Olatide called it a revenue booster but poorly timed amid ongoing subsidy removal effects, predicting higher inflation and continued imports despite costs. He advocated for naira-based crude deals and boosting output to 3 million barrels daily.
Petroleum Products Retail Outlets Owners Association’s Billy Gillis-Harry praised it for protecting local refineries but warned of potential scarcity without reviving state refineries by December 2025.
The Centre for the Promotion of Private Enterprise, led by Muda Yusuf, endorsed the tariff as strategic protectionism to cut import reliance, create jobs, and save foreign exchange, while calling for added supports like low-cost energy and incentives.
