In a controversial policy move, the Nigerian government under President Bola Tinubu has approved a 15% import duty on Premium Motor Spirit (petrol) and diesel, raising alarm among industry stakeholders who warn that it could unfairly benefit the Dangote Refinery at the expense of independent fuel importers.
According to a confidential memo dated October 21, 2025, and obtained exclusively by SaharaReporters, the government introduced a “market-responsive import tariff framework” aimed ostensibly at stabilizing the downstream petroleum market and reinforcing national energy security by protecting local refiners.
The new duty is levied on the Cost, Insurance, and Freight (CIF) value of imported fuel, expected to increase the landing cost by about ₦99.72 per litre. This is projected to push the retail price of petrol at Lagos pumps to an average of ₦964.72 per litre, which officials argue remains competitive within the region.However, sources close to the petroleum sector reveal that the real intent behind the policy is to consolidate fuel supply control under Aliko Dangote’s Lagos refinery. Crucially, the memo exempts the Dangote Refinery from the import duty by classifying it as part of an Export Processing Zone (EPZ), allowing the refinery to import crude oil and export refined petroleum products with tax exemptions.
Meanwhile, independent fuel marketers will be subjected not only to the 15% import duty but also a 7.5% VAT and an existing 5% petroleum consumption tax, cumulatively imposing over 30% in levies. Industry insiders suggest this will hamper their competitiveness, effectively sidelining them from the market.
The tariff implementation is seen as potentially detrimental to Nigeria’s fuel market, risking black-market hoarding and inflationary pressures. Economists warn that while the government claims to encourage competition, the policy could create a monopoly, giving Dangote Refinery the power to set prices unilaterally.
The new tax measures are expected to generate approximately ₦14 billion daily for the Federal Government’s revenue service, raising further concerns about transparency and the broader impact on Nigerian consumers.Dangote Group has dismissed the allegations of favoritism as “rubbish,” maintaining that the refinery’s massive production capacity negates any need to import refined fuel.
