President Bola Ahmed Tinubu’s decision to approve a 15% import duty on petrol and diesel has drawn sharp criticism from economists and political figures, including members of his own party, the All Progressives Congress (APC).
The tariff, which takes immediate effect, is part of what the government describes as a “market-responsive import tariff framework.” Officials say the measure aims to support local refineries, reduce Nigeria’s dependence on imported fuel, and strengthen the value of the naira.
The President’s approval was contained in a letter dated 21 October and signed by his Private Secretary, Damilotun Aderemi. The directive followed a proposal from the Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, who argued that the policy would “align import costs with domestic market realities.”
Adedeji said the initiative would help stabilise the downstream petroleum sector and encourage crude oil transactions in local currency.
“The core objective of this initiative is to strengthen refining capacity and ensure a stable, affordable supply of petroleum products,” he stated.
However, economists warn that the new tariff will likely push up fuel prices and worsen inflation.
According to FIRS projections, the 15% duty could raise the landing cost of petrol by about ₦99.72 per litre.
The Registrar of the Institute of Finance and Control of Nigeria, Mr Godwin Eohoi, said the increase would “further strain household incomes and small businesses that rely on fuel for power and transport.”
He added that higher energy costs could also drive up food prices and deepen poverty levels.
“This policy could worsen public discontent, especially after the removal of fuel subsidies and the depreciation of the naira,” Eohoi said.
A senior APC figure, Chief Ayiri Emami, described the decision as “ill-timed” and warned that it could impose further hardship on ordinary Nigerians.
“Anybody advising the President to impose a 15% tax on petroleum right now is not doing him any good,” Emami told journalists in Abuja.
“This kind of policy will not hurt marketers, it will hurt ordinary Nigerians. Whatever tax you put on petroleum goes straight back to the people on the streets.”
Emami, who is from Delta State, urged the government to suspend the duty until more relief measures are in place.
“After removing the fuel subsidy, we haven’t seen much positive reflection. Things are still hard. So why add another burden?” he asked.
Economist Johnson Dele said the measure could strengthen Nigeria’s long-term energy security but warned of immediate social and economic challenges.
“It’s a strategic step towards protecting local refineries, especially as the Dangote Refinery and modular plants ramp up production,” he explained.
“But without transparent pricing and targeted consumer support, the government risks eroding public confidence in its reforms.”
Nigeria has struggled with rising inflation and a weak currency since the removal of fuel subsidies in 2023. Economists say the latest policy could test public patience with the government’s economic agenda.