President Bola Tinubu has approved a 15 percent import duty on petrol and diesel to encourage local refining and reduce dependence on imported fuel.

The directive, sent to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), takes immediate effect. It means companies importing fuel will now pay 15% of the value of their shipments as tax.

According to the presidency, the decision is part of ongoing economic reforms designed to grow revenue, protect local industries, and promote energy self-sufficiency.

“The policy is meant to encourage investment in local refineries and reduce pressure on foreign exchange,” a senior government official said.

Government officials say the new duty aims to protect local refineries like Dangote Refinery and generate more revenue. However, experts warn it could push fuel prices up by about ₦90 to ₦100 per litre, affecting transport and living costs.

Reactions have been mixed, with some Nigerians supporting the move as a step toward energy independence, while others criticize its timing amid economic hardship.

However, the FIRS and NMDPRA are expected to release implementation guidelines soon.