The Renewed Hope Global Secretariat commends President Bola Ahmed Tinubu GCFR for approving the introduction of a 15 per cent ad-valorem import tariff on Premium Motor Spirit (PMS) and Automotive Gas Oil (Diesel) as part of a new market-responsive tariff framework designed to protect domestic refiners, stabilise fuel prices, and reinforce Nigeria’s energy security.
The approval, jointly proposed by the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), was formally endorsed by the President on October 21, 2025.
This policy represents a significant milestone in the Federal Government’s ongoing reform of the downstream petroleum sector. It is designed to prevent duty-free imports from undercutting locally refined products, safeguard investments in domestic refining operations, including the Dangote Refinery and other modular refineries, and ensure a competitive, fair pricing environment for both consumers and producers.
The new framework also seeks to operationalise crude oil transactions in local currency, enhance national refining capacity, and guarantee a stable and affordable fuel supply across Nigeria. While Nigeria has achieved local sufficiency in diesel production and continues to scale up petrol refining, the government recognises that import parity pricing often undercuts the recovery costs of local production. This tariff adjustment ensures cost recovery for local refiners, promotes continued investment, and protects millions of Nigerian jobs tied to the downstream value chain.
Under the approved arrangement, a 15 per cent import duty will be applied to PMS and diesel, calculated on the Cost, Insurance, and Freight (CIF) value at discharge. At current CIF levels, the tariff adds approximately โฆ99.72 per litre, bringing the estimated Lagos pump price to โฆ694.72 per litre ($0.62), which remains well below regional averages of โฆ 1,760 ($1.76) in Senegal, โฆ 1,520 ($1.52) in Cรดte d’Ivoire, and โฆ 1,370 ($1.37) in Ghana per litre.
Government authorities have clarified that the measure is not revenue-driven but corrective, aimed at aligning import costs with domestic realities while maintaining affordability for consumers. Funds generated will be paid into a designated Federal Government revenue account under FIRS supervision, with end-to-end verification by NMDPRA before cargo clearance. The Nigeria Customs Service (NCS) will provide implementation and monitoring support.
The policy derives its legal authority from Sections 71 and 72 of the Petroleum Industry Act (PIA), which empower the NMDPRA to issue regulations that promote economic development and public service obligations. The Presidency has directed that the tariff be gazetted under Section 3(4) of the PIA for full legal effect. A 30-day transition window has also been approved to allow importers to adjust to the new policy for cargoes already in transit.
The introduction of this tariff framework is consistent with President Tinubu’s Renewed Hope Agenda, which prioritises sustainable economic growth, energy self-sufficiency, and domestic industrial expansion. This bold step reflects the administration’s commitment to building a resilient energy sector, reducing foreign exchange exposure, and promoting long-term price stability in the downstream market.
In his handwritten approval, President Tinubu wrote: “Approved as prayed for implementation immediately.”
The Renewed Hope Global Secretariat lauds this decisive action as a forward-looking reform that reinforces Nigeria’s march toward complete refining independence and a stronger, more stable energy economy.
Signed:
Hon Victor Okebunmi,
Senior Special Assistant to the Director of Publicity,
Renewed Hope United Kingdom.
