Tinubu’s 15% Fuel Import Duty Sparks Mixed Reactions as Dangote Refinery Backs Policy
President Bola Ahmed Tinubu has approved the implementation of a 15 per cent import duty on petrol and diesel, a move that is set to redefine the dynamics of Nigeria’s downstream oil sector in the coming weeks.
PulseNets learnt that the development will likely see Nigerians paying higher at fuel stations, as the tariff translates to an estimated ₦99.72 increase per litre for imported petrol and diesel.
According to figures obtained by PulseNets from the Federal Inland Revenue Service (FIRS), the new pricing framework will push petrol pump prices in Lagos to around ₦964.72 per litre, up from the current ₦925. The figures are expected to be slightly higher in Abuja and other parts of the country.
FIRS Executive Chairman, Zacch Adedeji, said the policy aims to protect local refineries and support domestic refining capacity. “This move is meant to ensure sustainability, not hardship. We are trying to strengthen our local refineries and reduce over-reliance on imports,” Adedeji was quoted as saying.
In the past five days, the new tariff policy has generated mixed reactions across political, economic, and industrial circles.
Presidential aide Sunday Dare defended the decision, describing it as “a bridge, not a burden.” He told PulseNets that the new import duty would reverse Nigeria’s dependency trend, spur local refining, and expand domestic capacity.
Economist and CEO of Financial Derivatives Company Limited, Bismark Rewane, also told PulseNets that the policy aligns with economic logic. “It’s a positive step if the government truly wants to promote local production and stabilize the energy market,” he stated.
Similarly, the Centre for the Promotion of Private Enterprise (CPPE) backed the move, noting that it would protect refineries like Dangote and the NNPC from unfair competition.
However, not everyone shares this optimism. APC chieftain and Delta-based businessman Ayiri Emami told PulseNets that the new 15 per cent import duty would transfer the burden to ordinary Nigerians. “This kind of policy won’t hurt marketers—it will hurt the people,” he said.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) also expressed reservations. Its spokesperson, Chinedu Ukadike, warned that the tariff would trigger a rise in fuel prices and further strain consumers already struggling with inflation.
15% Import Duty Will End Nigeria’s Import Dependency — Okon
In an interview with PulseNets, Dr. Tim Okon, Managing Partner of TENO Energy Resources and former Group Executive Director of NNPC, explained that the import tariff is designed to end Nigeria’s chronic dependence on imported fuel.
“The 15 per cent import tariff is strategic—it will help consolidate the impact of Dangote Refinery and gradually phase out the need for large-scale importation,” Okon said.
He added that while the policy could boost government revenue if imports continue, the market should be allowed to determine pricing. “If there is still a market for imported petrol despite Dangote’s capacity, then so be it. The important thing is fair competition under the PIA,” he explained.
Okon further emphasized that implementing the Petroleum Industry Act (PIA) is key to ensuring transparency and competitiveness. “Nigeria is in a far better place now with Dangote Refinery than before,” he noted.
Policy Could Encourage Cheap Imports — PETAN
The Publicity Secretary of the Petroleum Technology Association of Nigeria (PETAN), Lucky Akhiwu, told PulseNets that while the policy is commendable, it could unintentionally lead to cheap refined product imports that may undercut local producers.
“It’s a good policy in principle, but we must guard against the dumping of substandard or cheap refined products,” Akhiwu warned.
He also acknowledged that fuel and diesel prices will rise once the tariff takes effect, although he expressed confidence that Dangote’s expanding capacity could stabilize the market in the long term.
Tariff May Backfire If Prices Are Manipulated — NLC
The Nigeria Labour Congress (NLC), through its spokesperson Benson Upah, spoke to PulseNets about the potential risks of the new import duty.
“This policy will make sense only if local refineries can meet domestic demand without manipulation,” Upah stated.
He cautioned that the tariff could backfire if used by monopolies to exploit consumers. “If this design is meant to ensure local supply at the start, only for it to be abused later, then it becomes a disguised 15 per cent tax on Nigerians,” he warned.
Dangote Refinery Supports Policy
Industrial data obtained by PulseNets from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) revealed that Dangote Refinery currently supplies around 20 million litres of petrol daily, against an average national consumption of 45–50 million litres.
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In a recent update, Dangote Refinery disclosed that it is now loading over 45 million litres of PMS daily, fully backing the government’s import duty as a protectionist measure for local refining.
Currently, Nigerians pay between ₦925 and ₦960 per litre for petrol in Lagos and Abuja. Major marketers such as NNPCL, Eterna, and AA Rano have slightly reduced prices to around ₦940 per litre, reflecting ongoing market adjustments ahead of the new tariff’s full enforcement.
