Nigeria has introduced a 15 percent ad-valorem tax on imported diesel and Premium Motor Spirit (PMS), also known as petrol, as part of measures to protect local refineries and strengthen the national currency, the naira.
Despite the commencement of production at the Dangote Refinery, Nigeria still imported about 15.01 billion litres of petrol between August 2024 and the first 10 days of October 2025, representing nearly 69 percent of total national petrol supply during the 15-month period, according to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
A letter dated October 21, confirming the government’s decision to impose a 15 percent tax on imported petrol and diesel, was delivered to the Federal Inland Revenue Service (FIRS) and the NMDPRA.
The approval follows a request by the FIRS to apply the 15 percent duty on the cost, insurance, and freight (CIF) value of imported products to align import costs with domestic realities.
With the new policy, the implementation of the import duty is expected to increase the pump price of petrol by an estimated ₦99.72 per litre.
Following the development, the Nigerian National Petroleum Company Limited (NNPCL) announced that it has commenced a detailed review of the country’s three state-owned petroleum refineries with a view to bringing them back to full operational status.
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