President Bola Ahmed Tinubu has approved the introduction of a 15 per cent ad-valorem import duty on petrol and diesel, a policy aimed at protecting Nigeria’s emerging local refineries and stabilising the downstream petroleum market.

The directive, contained in a letter dated October 21, 2025, and made public on October 30, was addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). It ordered the immediate implementation of the new tariff as part of a “market-responsive import tariff framework.”

The letter, signed by the President’s Private Secretary, Damilotun Aderemi, conveyed Tinubu’s approval following a proposal by FIRS Executive Chairman, Zacch Adedeji, who argued that the measure would align import costs with domestic production realities.

According to Adedeji, the new tariff forms part of ongoing fiscal and energy reforms designed to boost local refining capacity, stabilise prices, and strengthen Nigeria’s naira-based oil economy, in line with the administration’s Renewed Hope Agenda for energy security and economic sustainability.

“The core objective of this initiative is to operationalise crude transactions in local currency, strengthen local refining capacity, and ensure a stable, affordable supply of petroleum products across Nigeria,” Adedeji stated.

The FIRS chairman further warned that price instability in the downstream market was being fuelled by the misalignment between local refining costs and import parity pricing, which often undercuts domestic producers.

“While domestic refining of petrol has begun to increase and diesel sufficiency has been achieved, price instability persists, partly due to this misalignment,” he wrote.

Adedeji explained that the 15 per cent duty on the cost, insurance, and freight (CIF) value of imported fuels would discourage duty-free imports from undercutting domestic producers, while ensuring fair competition and cost recovery for refiners.

Projections contained in the presidential letter indicate that the new tariff could raise the landing cost of petrol by an estimated ₦99.72 per litre, bringing average Lagos pump prices to about ₦964.72 ($0.62)—still below regional averages such as Senegal ($1.76), Côte d’Ivoire ($1.52), and Ghana ($1.37) per litre.

The move comes as Nigeria intensifies efforts to reduce dependence on imported petroleum products and expand domestic refining capacity.

The 650,000-barrel-per-day Dangote Refinery has already commenced diesel and aviation fuel production, while modular refineries in Edo, Rivers, and Imo States have begun small-scale petrol refining.

Despite these advances, imported petrol still accounts for about 67 per cent of national demand, underscoring the government’s push to balance protection for local producers with affordability for consumers.

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Vice President Kashim Shettima made the disclosure at the Decarbonising Infrastructure in Nigeria (DIN) Summit held in Abuja, where he emphasised the urgent need to transition to cleaner, more resilient energy systems.

“Climate action is no longer a luxury but a critical economic imperative,” Shettima declared. “Nigeria cannot afford to build yesterday’s infrastructure for tomorrow. If we don’t act decisively, we risk being sidelined in a rapidly evolving global economy.”

A key highlight of the summit was the government’s plan to transform the Onne Port in Rivers State into the country’s first fully green port. Discussions are underway with private sector investors to commit $60 million towards electrifying the port using a hybrid energy model that eliminates diesel dependence.

“This initiative marks a strategic shift,” the Vice President said. “With hybrid energy, we can cut emissions, reduce operational costs, and ensure uninterrupted, clean power for terminal operators and port users.”

According to Shettima, 75 percent of Nigeria’s greenhouse gas emissions stem from infrastructure-related sectors — including energy, transportation, agriculture, and urban development. These sectors, he said, must be decarbonised if Nigeria hopes to meet its net-zero target by 2060.

He projected that effective implementation of Nigeria’s Energy Transition Plan and Climate Change Act could create over 1.5 million green jobs by 2035, expand climate-smart agriculture, and unlock new export markets for clean energy.

“This summit is not about wishful thinking,” Shettima noted. “It is about action. It’s about building a future where infrastructure doesn’t harm but heals — a Nigeria free of polluting generators and fragile power grids.”

The Vice President also announced the forthcoming launch of a Green Investment Portal, designed to connect investors with viable, climate-smart infrastructure projects. He called for urgent regulatory reforms and cross-sectoral policy alignment to accelerate green financing and innovation.

Director-General of the National Council on Climate Change, Dr. Nkiruka Maduekwe, stressed Nigeria’s disproportionate exposure to climate risks, despite its low contribution to global emissions. She identified renewable energy adoption, smart agriculture, and land-use reforms as key strategies for resilience and carbon sequestration.

Echoing these priorities, Musaddiq Mustapha Adamu, Personal Assistant to the President on Sub-national Infrastructure, affirmed the federal government’s commitment to empowering states and communities in climate adaptation and green growth.

“Today’s conversation is not just about emissions. It’s about inclusion, economic survival, and restoring hope through sustainable infrastructure,” Adamu said.

The DIN Summit brought together policymakers, private sector players, and international development partners to chart Nigeria’s path toward a climate-resilient and economically inclusive future.

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