The Federal Inland Revenue Service (FIRS) has clarified that President Bola Ahmed Tinubu’s recent approval of a 15 % import duty on petrol and diesel is intended to align import costs with domestic realities. Zacch Adedeji, Executive Chairman of FIRS, explained that the duty aims to encourage domestic refining and correct the misalignment between local refiners and marketers. The new tax is expected to add an estimated cost of ₦99.72 per litre to imported petrol and diesel.
Adedeji emphasized that the primary goal is not to raise revenue but to stabilise the market. The current price gap between locally refined products and import‑parity pricing has created instability, which the duty seeks to address. While domestic refining of petrol has begun to increase and diesel sufficiency has been achieved, price volatility persists because of the disconnect between local refiners and marketers. The 15 % import duty is designed to nudge landed import costs toward local cost recovery without disrupting supply or excessively inflating consumer prices.
Despite the adjustment, estimated pump prices in Lagos are expected to remain relatively low at around ₦964.72 per litre (≈ $0.62), well below regional averages such as Senegal ($1.76 per litre), Côte d’Ivoire ($1.52 per litre) and Ghana ($1.37 per litre). The move has generated mixed reactions: some stakeholders have expressed outrage and called for the duty’s withdrawal, while others, including economist Bismarck Rewane, view it as a positive step toward encouraging local production.
The introduction of the 15 % import duty on petrol and diesel forms part of the government’s broader effort to promote domestic refining and reduce reliance on imported fuels. As Nigeria navigates its energy sector, the impact of this new tax will be closely monitored, with the aim of stabilising the market and fostering local production—a significant step toward addressing the complexities of the country’s energy landscape.
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