Nigeria’s oil marketers have criticised the Federal Government’s recent approval of a 15% import duty on petrol, arguing that the policy contradicts the country’s commitment to deregulation and may have adverse effects on the downstream petroleum sector and consumers.
The 15% import duty was signed into effect by President Bola Tinubu on October 21, 2025, as part of broader fiscal reforms aimed at protecting the multi-billion-dollar investments in domestic refining, notably the Dangote refinery, and to boost non-oil revenues ahead of planned tax changes in 2026. The new tariff targets imported petrol and diesel, seeking to curb cheaper fuel flooding the market which undermines local production.
While government officials have hailed the reform as a step toward fuel self-sufficiency and market stability, oil marketers express concerns that the import duty significantly raises the landing costs of fuel imports and may lead to increased pump prices, potentially by as much as ₦150 per litre. Ayodele Oni, a Partner at Bloomfield Law Practice, said “in a deregulated economy, the imposition of a 15% import duty creates price volatility risks.” He cautioned that the policy could exacerbate inflation and worsen cost-of-living pressures for Nigerians already struggling with economic hardships.
Critics argue the import duty runs counter to deregulation, which aims to allow market forces to determine fuel prices without excessive government interference. They warn that the added cost of import duty could dampen competition and delay the country’s push toward full fuel independence.
On the other hand, supporters of the policy stress its role in protecting and incentivising domestic refineries. Mike Osatuyi, former National Operations Controller of the Independent Petroleum Marketers Association of Nigeria (IPMAN), praised the policy for shielding local refining investments and attracting further foreign participation in the sector. He emphasized “the 15% import duty discourages import of cheaper refined products, promotes competition among marketers, and ultimately benefits Nigerians.” Osatuyi described the Dangote refinery as “a national asset and critical to Nigeria’s energy security”.
However, opposition groups such as the African Democratic Congress (ADC) have called for the withdrawal of the import duty, labeling the move as “insensitive” and liable to deepen economic hardship. The ADC argues that such policies must consider the welfare of ordinary Nigerians and warns that inflating fuel prices undermines social stability and economic growth.
The real-life impact of the import duty remains to be fully seen, especially on fuel pump prices, inflation, and supply stability. Nigeria has experienced past shortages due to supply disruptions, and stakeholders are watching closely how the new tariff affects market dynamics.
In summary, the 15% petrol import duty approved by President Tinubu presents a complex trade-off between protecting domestic refining capacity and preserving the deregulated market ideal. The policy’s success depends on balancing government intervention with market realities, ensuring fuel affordability while encouraging local production. Next steps likely involve monitoring price trends, refining sector performance, and possibly adjusting fiscal measures to mitigate negative social impacts.
