The Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has explained the rationale behind President Bola Ahmed Tinubu’s recent approval of a 15 per cent import duty on petrol and diesel.
According to Adedeji, the move is not intended to generate additional revenue but to correct market distortions and align import costs with domestic realities, especially as local refining capacity continues to improve.
In a memo addressed to President Tinubu, Adedeji noted that the decision was aimed at bridging the pricing gap between locally refined products and imported fuels, which has been a major cause of instability in the petroleum market.
“While domestic refining of petrol is increasing and diesel sufficiency has been achieved, price instability persists due to the misalignment between local refiners and marketers,” he explained.
He further clarified that the adjustment would add approximately ₦99.72 per litre to the cost of imported fuel, bringing import parity closer to domestic cost recovery without triggering unsustainable price hikes.
Even with the new import duty, Adedeji said pump prices in Lagos would likely remain around ₦964.72 per litre ($0.62, still lower than in other West African countries such as Senegal ($1.76), Côte d’Ivoire ($1.52), and Ghana ($1.37).
Adedeji stressed that the new tariff was designed to encourage local refining and ensure a fair and stable pricing environment for both producers and consumers.
However, the policy has sparked mixed reactions among Nigerians. Critics, including Ayiri Emami, a chieftain of the All Progressives Congress (APC) in Delta State, described the decision as “anti-people”, urging President Tinubu to reverse the policy to ease the hardship on citizens.
In contrast, economist Bismark Rewane, CEO of Financial Derivatives Company Limited, defended the measure, saying it would ultimately promote local production and strengthen Nigeria’s energy independence.
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