The approval of a 15 percent import tariff on petrol and diesel by President Bola Tinubu has triggered widespread concern, as it comes at a time when Nigerians are already grappling with severe economic hardship.
Development Diaries reports that petroleum marketers have warned that the pump price of premium motor spirit, popularly called petrol, could exceed N1,000 per litre following President Bola Tinubu’s approval of a 15 percent ad valorem import tariff on fuel imports.
According to media reports, the new policy takes effect after a 30-day transition period expected to end on 21 November 2025, and it is aimed at protecting local refineries and stabilising the downstream market.
It is understood that the tariff is backed by Sections 21 and 22 of the Petroleum Industry Act (PIA), which empower the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to impose public service obligations on licensees to promote national energy security and economic development.
Under Section 3(4) of the PIA, the President is also empowered to issue policy directives to the regulator to enforce such measures.
However, the concern of many is that the policy risks worsening inflation, with the projected increase in petrol pump price.
For a population where over 133 million citizens are already classified as multidimensionally poor, according to the National Bureau of Statistics (NBS), this decision could deepen the cost-of-living crisis and further erode disposable income.
Although the government insists that the tariff is designed to protect local refineries and stabilise the downstream sector, the timing raises critical questions about its sensitivity to citizens’ economic realities.
The Federal Inland Revenue Service (FIRS) itself projected that the new duty would add an estimated N99.72 per litre to the landing cost of petrol, translating to an additional N1.92 billion in daily import costs.
This increment will inevitably be reflected in transportation, food prices, and the general cost of production, tightening the squeeze on both households and small businesses.
The government’s argument that the measure will safeguard local refining investments, such as the Dangote Refinery and modular refineries in Edo, Rivers, and Imo, appears to overlook the current limited refining capacity.
Despite heavy spending, over N11.35 trillion between 2010 and 2020 on refinery rehabilitation and fuel subsidies, Nigeria still imports more than 67 per cent of its petrol needs.
This structural dependence on imports means that any tariff increment will have immediate inflationary consequences rather than stimulating domestic production in the short term.
The concerns voiced by petroleum marketers, industry experts, and opposition figures like SDP presidential candidate Adewole Adebayo are therefore not misplaced.
They warn that the policy could create a quasi-monopoly for a few dominant players, distort market competition, and worsen hardship among ordinary Nigerians.
Beyond that, the combination of this tariff and the five per cent fuel surcharge scheduled for January 2026 could push the energy market towards instability and scarcity if local refiners fail to meet domestic demand.
As Minister of Petroleum, President Tinubu must reconsider the implementation of this 15 per cent import duty and instead prioritise the rehabilitation and full operation of the nation’s refineries in Port Harcourt, Warri, and Kaduna.
The president’s focus should be on building an oil economy that reduces import dependence, ensures affordable fuel for citizens, and supports inclusive growth. Nigerians want policies that ease their burden, not deepen it.
