Presidency Defends 15% Fuel Import Tariff

The Presidency has confirmed that President Bola Tinubu has approved a 15 per cent import tariff on petrol and diesel, describing the decision as a bold and strategic step to promote local refining, reduce dependence on imports, and strengthen Nigeria’s energy independence.

The confirmation was made on Friday in a statement shared on X (formerly Twitter) by the Special Adviser to the President on Media and Public Communications, Sunday Dare.

He said the policy “is a bridge, not a burden,” aimed at transforming Nigeria’s petroleum sector and ensuring long-term economic stability.

“It’s no longer news that President Bola Ahmed Tinubu has approved a 15 per cent import duty on petrol and diesel — a bold and strategic move to reshape Nigeria’s energy landscape,” Dare stated.

According to him, the policy is designed to discourage fuel importation, encourage investment in local refining, and position Nigeria for energy self-sufficiency after decades of over-reliance on imported petroleum products.

Dare explained that Nigeria, despite being one of the world’s largest crude oil producers, had spent years importing refined petroleum, a situation that drained foreign exchange, exported jobs, and discouraged domestic investment.

“For years, the nation has depended heavily on imported fuel despite being a leading crude oil producer, draining foreign exchange and exporting jobs that should have been created at home. This new policy is designed to reverse that trend by encouraging local refining, boosting domestic capacity, and ensuring that Nigeria’s oil wealth translates directly into national prosperity,” he said.

He added that the tariff will make imported fuel less competitive, thereby giving an advantage to local refineries such as the Dangote Refinery, Port Harcourt Refinery, and other modular refineries currently under development.

“By making imported fuel less competitive, the government is tilting the market in favour of local refineries, laying the groundwork for a self-sustaining and resilient energy sector,” Dare noted.

The presidential aide further assured that as domestic refining capacity increases, fuel supply will stabilize and pump prices will moderate over time, while the downstream sector will experience new job creation, industrial growth, and investment inflows.

“As local refining ramps up and supply strengthens, prices are expected to moderate while jobs, investment, and industrial activity expand. This policy is therefore not a burden but a bridge — from dependence to independence, from vulnerability to strength,” Dare added.

The announcement comes amid concerns from petroleum marketers, who have cautioned that the pump price of petrol could exceed ₦1,000 per litre following the introduction of the new tariff.

Government officials, however, argue that the short-term adjustments were necessary to protect local refiners and secure the long-term benefits of a self-reliant energy sector.

The 15 per cent tariff policy is set to take effect after a 30-day transition period, ending on November 21, 2025, as part of the administration’s broader plan to stabilize the energy market, attract investors, and ensure Nigeria’s oil wealth delivers sustainable economic growth.(Daily trust)