Nigeria has approved a 15% import duty on petrol and diesel, according to a presidential memo seen by Reuters on Thursday, in a move to safeguard multi-billion-dollar investments in local refining from cheaper imported fuel.
The measure is part of broader fiscal reforms aimed at boosting non-oil revenues ahead of planned tax changes in 2026, following last year’s removal of fuel subsidies and foreign exchange controls.
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“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. President Bola Tinubu signed off on the new duty on October 21.
Nigeria, Africa’s top oil producer, has long sought to reduce dependence on imported fuel. The ambition gained traction with last year’s launch of the 650,000 barrels-per-day Dangote refinery, Africa’s largest at $20 billion.
However, the refinery has faced competition from cheaper imports. Pump prices are around 928 naira ($0.6322) per litre, with the duty expected to raise prices by about 99 naira. Nigeria has experienced fuel shortages in the past due to supply challenges.
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Image Credit: TRT Afrika
