Nigeria’s New 15 % Petrol Import Tariff Could Cost Consumers almost ₦1 Trillion Annually

Nigerians may face an additional ₦973.6 billion in fuel costs annually if the Federal Government goes ahead with its plan to impose a 15 % import tariff on Premium Motor Spirit (PMS, commonly known as petrol). A price analysis by newsmen highlights the likely impact of the policy.

Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) shows that between January and September 2025 Nigeria imported approximately 26.75 million litres of petrol each day. At the tariff rate, this translates to about ₦2.67 billion per day, or ₦973.64 billion for a full year.

The policy, approved by Bola Tinubu, is intended to support domestic refining and boost government revenue. Under the presidential memo signed by his Private Secretary, Damilotun Aderemi, the duty applies to the cost, insurance and freight (CIF) value of imported petrol and diesel. The memo followed a proposal from the Federal Inland Revenue Service (FIRS) Chairman, Zacch Adedeji, describing the tariff as a reform to “align import costs with domestic market realities” and protect local refining capacity.

Fuel importers and independent marketers oppose the move, warning that it could raise pump prices, exacerbate inflation and stretch household budgets further ahead of the festive season. They argue that instead of tariffs the government should incentivise local refineries and deepen the digital economy agenda.

Meanwhile, supporters say the tariff will level the playing field for domestic refineries such as the Dangote Petroleum Refinery and strengthen Nigeria’s energy independence.

As the policy takes effect after a 30-day transition period expected to end by 21 November 2025, consumers and industry watchers await to see how the increased cost will translate at the pump.