The Federal Government has defended its new 15 percent import duty on petrol and diesel, saying the measure is intended to discourage fuel importation, promote local refining, and ensure that Nigeria’s oil wealth benefits its citizens directly.
Presidential spokesperson Sunday Dare said on Friday that the policy would make imported fuel less competitive while encouraging local players such as the Dangote Refinery and modular plants to expand production. The government, he added, sees this as a step toward energy independence and economic self-reliance.
“For years, Nigeria has depended heavily on imported fuel despite being one of the world’s leading crude oil producers,” Dare said in a statement. “This has drained foreign exchange and exported jobs that should have been created at home. The new import duty is a bold move to reverse that trend.”
Government Bets on Domestic Refining
Under the new policy, fuel importers will pay a 15 percent duty on the cost, insurance, and freight value of imported petrol and diesel. The presidency believes this will gradually shift market preference to locally refined products, reducing the country’s reliance on costly imports and stabilising the naira.
Officials argue that as domestic supply improves, competition among local refiners will help moderate prices and spur job creation. The administration sees it as part of a broader strategy to align fiscal reforms with the “Renewed Hope” agenda, which targets industrial expansion, energy security, and sustainable growth.
The Federal Inland Revenue Service (FIRS), which initiated the proposal, said the measure was designed to align import costs with domestic realities and strengthen Nigeria’s oil economy. FIRS Chairman Zacch Adedeji, in his memo to the President, said the move supports “price stability and naira-based energy sustainability.”
Economic Ripples for Households
While the government insists the new tariff will eventually lower prices, Nigerians are wary of immediate cost pressures. Fuel prices are likely to rise in the short term as importers adjust to the duty, pushing up transport fares and the cost of goods across markets.
For small businesses and households already struggling with high inflation, any hike in fuel costs could tighten budgets further. Transport operators may pass the extra cost to commuters, while food sellers could face higher logistics expenses, deepening the squeeze on consumers.
Economists say the long-term benefits depend on how quickly local refineries can scale up production. “If domestic refineries deliver consistently and at competitive prices, we could see prices stabilise over time,” said a Lagos-based analyst. “But in the short run, consumers will feel the pinch.”
