Mkpoikana Udoma
Port Harcourt — President Bola Ahmed Tinubu has approved the introduction of a 15 percent ad-valorem import duty on Premium Motor Spirit, PMS, and Automotive Gas Oil (diesel), as part of a new market-responsive tariff framework aimed at safeguarding Nigeria’s emerging refining industry and stabilising the downstream petroleum market.
According to a State House memorandum sighted by SweetCrude Reports, and addressed to the Attorney-General of the Federation, the Executive Chairman of the Federal Inland Revenue Service, FIRS, and the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, the President granted approval for the implementation of the tariff after reviewing recommendations from a detailed policy paper submitted on October 10, 2025.
The approved framework introduces a 15 percent import duty to be applied to the Cost, Insurance, and Freight value of imported petrol and diesel at discharge. The tariff is intended to close the price gap between locally refined and imported fuel, ensuring that domestic producers can recover costs and remain competitive.
“The objective is to reinforce national energy security, safeguard local refining capacity, stabilise the downstream market, and ensure fair competition aligned with the Renewed Hope Agenda,” the memorandum stated.
The document noted that the new tariff is “not revenue-driven but corrective,” designed to protect consumers and domestic producers from unfair pricing and dumping of duty-free imported fuels that could undermine Nigeria’s nascent refining sector.
Under the approved plan, import payments will be made into a designated Federal Government revenue account under the supervision of the Nigeria Revenue Service (formerly FIRS), with digital verification by the NMDPRA before discharge clearance. A 30-day transition window has been granted to allow importers to adjust cargoes already in transit.
The framework, backed by Sections 71 and 72 of the Petroleum Industry Act, PIA, empowers the NMDPRA to impose public service obligations and levy tariffs in the interest of national economic development and energy security.
“Your Excellency may wish to note that while domestic refining of PMS has begun to increase and local sufficiency in diesel production has been achieved, price instability persists partly due to misalignment between local refiners and marketers,” the memo explained. “Import parity remains the benchmark for pricing but often sits below the cost recovery point of local producers.”
According to the proposal, the N99.72 per litre increase resulting from the tariff will push the landed cost of imported fuel closer to local production costs, without raising retail pump prices beyond N964–N972 per litre in Lagos, still significantly lower than regional averages in Senegal ($1.76/litre), Côte d’Ivoire ($1.52/litre), and Ghana ($1.37/litre).
The policy also directs the NMDPRA and the Nigeria Customs Service to jointly implement the framework and publish official regulations, ensuring that import licenses prioritise local production first before external supply is considered.
“The government’s responsibility is twofold, to protect consumers and domestic producers from unfair pricing, while ensuring a level playing field that allows domestic refiners to cover costs and attract continued investment,” the memo added.
The document concluded that the tariff measure represents “another bold step in President Tinubu’s legacy of reforms that strengthen the sustainability and competitiveness of Nigeria’s energy ecosystem.”
“This reform will accelerate Nigeria’s path toward fuel self-sufficiency, protect consumers and investors alike, and stabilise the downstream petroleum market,” the report stated.
The new import tariff is expected to take effect in November 2025, following the expiration of the 30-day adjustment period.
This article was originally posted at sweetcrudereports.com
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