Nigeria has approved a 15% import duty on gasoline and diesel in a bid to protect domestic refining and reduce reliance on foreign fuel, as the Dangote refinery continues to face operational challenges.
Presidential Approval Targets Market Realignment
On 21 October 2025, Nigerian President Bola Tinubu authorized a 15% ad valorem import duty on Premium Motor Spirit (PMS) and Automotive Gas Oil (diesel). The directive, confirmed by the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), aims to align import costs with domestic production realities and bolster local refining capacity Within Nigeria Vanguard News.
The tariff will be applied to the cost, insurance, and freight (CIF) value of imported fuel and is expected to take effect after a 30-day implementation window.
Dangote Refinery’s Mixed Performance
The move comes amid persistent underperformance at the $20 billion Dangote Refinery, which has yet to fully meet national demand despite its 650,000 barrels per day (b/d) nameplate capacity. Nigeria continues to import approximately 170,000 b/d of gasoline, underscoring the gap between projected and actual output Nairametrics pluboard.com.
Dangote Industries has endorsed the tariff, calling it a “necessary protection” against fuel dumping and unfair competition. The company claims its production now exceeds domestic needs, though independent marketers dispute this, citing supply inconsistencies and pricing concerns Nairametrics veritynewsonline.com.
Industry and Public Reaction
While the government frames the policy as a step toward energy security and industrialization, critics warn it could trigger a fresh round of fuel price hikes, especially in urban centers where imported fuel remains dominant Daily Post Nigeria.
Some analysts also caution that the tariff may entrench monopolistic dynamics, favoring large refiners over smaller importers and potentially reducing market competition Within Nigeria.
The fuel import duty is part of a broader strategy to revive Nigeria’s refining sector, which has suffered from decades of underinvestment and mismanagement.
Sources:
Within NigeriaWithin Nigeria – Import Duty and Market Risks
NairametricsNairametrics – Dangote Endorses Tariff
Vanguard NewsVanguard – Tinubu Approves Fuel Tariff
pluboard.comPluboard – Boost for Dangote Refinery
veritynewsonline.comVerity News – Refinery vs Independent Marketers
Daily Post NigeriaDaily Post – Fuel Price Hike Looms
