Nigeria Introduces 15% Import Duty on Petrol and Diesel

LAGOS, October 30, 2025 — Nigeria has implemented a 15% import duty on petrol and diesel, a move aimed at supporting domestic refiners and promoting fuel self-sufficiency, according to a presidential memo obtained by Reuters. The new measure, signed off by President Bola Tinubu on October 21, seeks to protect billions of dollars in local refining investments from cheaper imported fuels.

This policy is part of Nigeria’s broader fiscal reform agenda, designed to increase non-oil revenue in anticipation of tax changes planned for 2026. The government emphasized that the import duty will help stabilize the downstream petroleum sector, safeguard local investors, and benefit consumers in the long term.

Supporting Domestic Refining

Nigeria, the largest oil producer in Africa, has long aimed to reduce its dependence on imported fuel. The commissioning of the 650,000 barrels-per-day Dangote Refinery last year marked a significant step toward that goal. The refinery, Africa’s largest and built at a cost of $20 billion, has faced challenges from imported petrol and diesel sold below the cost of domestic production.

“This reform will accelerate Nigeria’s path toward fuel self-sufficiency, protect consumers and investors alike, and stabilize the downstream petroleum market,” the memo stated.

Impact on Fuel Prices and Supply

Current pump prices for fuel in Nigeria stand at roughly 928 naira ($0.6322) per litre. Officials estimate that the new import duty could raise retail prices by about 99 naira per litre, though the government maintains that the long-term benefit of a stable domestic market outweighs this temporary price increase.

Nigeria has historically experienced fuel shortages due to supply disruptions, and policymakers hope that the new import duty will encourage local production, reduce dependency on imports, and prevent future supply crises.

The move also aligns with previous reforms, including last year’s removal of fuel subsidies and foreign exchange controls, which aimed to create a more sustainable energy sector.