- Nigeria’s 15% fuel import duty has raised concerns among oil marketers, who fear higher fuel prices and a decline in profits.
- The new 15% import duty could reshape Nigeria’s energy sector, supporting local refineries but squeezing independent marketers.
Nigeria’s 15% fuel import duty on petrol and diesel has triggered strong reactions across the nation’s oil and gas industry. Oil marketers say the new policy will make fuel more expensive and threaten the survival of smaller operators.
The duty, approved by President Bola Ahmed Tinubu, followed a proposal from the Federal Inland Revenue Service (FIRS). The agency recommended applying the tax to the cost, insurance, and freight (CIF) value of imports. According to FIRS Chairman Zacch Adedeji, the measure is part of wider reforms to strengthen the naira, promote local refining, and secure Nigeria’s energy future.
However, the policy has divided opinion. Some economists see it as a positive step toward reducing Nigeria’s dependence on imported fuel. Many marketers, however, believe it will immediately push prices higher. They warn that petrol could exceed ₦1,000 per litre, worsening inflation and reducing consumer spending power.
Tensions have also risen between Dangote Refinery, Africa’s most prominent, and independent oil marketers. Dangote maintains that it has enough capacity to meet local demand. Marketers disagree, insisting that current production levels remain inadequate. They argue that limiting imports now could lead to shortages and higher prices.
Chinedu Ukadike, Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), urged the government to avoid policies that favour one group over another. He warned that a monopoly could weaken competition and force many filling stations out of business. Ukadike also noted that the rise of Compressed Natural Gas (CNG) and electric vehicles may reduce fuel demand, putting more pressure on marketers.
He called for a truly deregulated market, where supply and demand determine prices. Ukadike also appealed for the removal of heavy taxes and administrative barriers to attract private investment in modular refineries. Greater competition, he said, would help reduce fuel prices in the long run.
Dr Paul Adams, an economist from Nasarawa State University, described Nigeria’s 15% fuel import duty as a “strategic but double-edged decision.” He said the move supports local refining but could hurt importers in the short term. According to Adams, higher costs may tighten profit margins, raise pump prices, and increase inflation until domestic refineries reach full capacity.
In defence of the policy, Presidential Adviser Sunday Dare said the 15% import duty is meant to make imported fuel less attractive. He added that the government aims to boost local refining, create jobs, and conserve foreign exchange. Dare also noted that a stronger local refining sector would ensure that Nigeria’s oil wealth benefits its citizens directly.
Ultimately, Nigeria’s 15% fuel import duty marks a turning point in the nation’s energy policy. It could strengthen local refining and drive self-reliance. Yet, in the short term, it presents serious challenges for independent marketers and consumers already struggling with rising costs.