Nigerians face an extra financial burden of approximately N974 billion each year on gasoline purchases due to the Federal Government’s impending 15 percent tariff on imported Premium Motor Spirit (PMS), according to an independent cost assessment.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) indicates that the country brought in an average of 26.75 million liters of petrol per day from January through September 2025. With the tariff set at N99.72 per liter based on current cost, insurance, and freight (CIF) valuations, this equates to roughly N2.67 billion in daily duties.
Extrapolated over 365 days, the total reaches N973.64 billion—an expense that consumers will absorb via elevated prices at filling stations once the measure takes effect. The policy is expected to generate substantial government income while simultaneously driving up costs for families, logistics firms, and enterprises.
President Bola Tinubu endorsed the 15 percent levy on both PMS and diesel through a directive relayed by his Private Secretary, Damilotun Aderemi. The decision stems from a submission by Federal Inland Revenue Service (FIRS) Chairman Zacch Adedeji, who framed it as a step to harmonize imported fuel pricing with domestic production expenses.
In his presentation to the presidency, Adedeji described the tariff as a key element of broader fiscal adjustments aimed at bolstering naira-denominated crude dealings, stabilizing energy markets, and promoting homegrown refining under the Renewed Hope Agenda. He recommended routing collections into a dedicated federal account overseen by the Nigeria Revenue Service, with NMDPRA handling audits.
Adedeji emphasized that the N99.72-per-liter hike would elevate landed costs without disrupting supply chains or pushing retail prices to unsustainable levels. He positioned the initiative as a corrective tool rather than a tax grab, intended to shield emerging local refiners from subsidized imports that erode their viability.
The FIRS leader highlighted ongoing market distortions caused by duty exemptions on foreign fuel, which he said disadvantage domestic plants now ramping up output. Diesel self-sufficiency has been attained, and petrol refining is gaining traction, yet volatility lingers from pricing mismatches between local producers and importers.
The tariff includes a 30-day grace period, with full implementation slated for November 21, 2025.
Industry Pushback Intensifies
Stakeholders in the downstream sector have voiced strong objections, cautioning that the levy could fuel inflation, escalate import expenses, and contradict recent deregulation efforts.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), told reporters that while the group supports presidential guidance in principle, the tariff’s structure risks skewing competition.
“The core of deregulation is a level playing field with willing buyers and sellers,” Ukadike stated. “Imposing duties that privilege one segment over another reverses those gains and could deter importers from competing with local suppliers.”
He advocated for subsidies or incentives to nurture domestic refineries instead of protective barriers, warning that the approach might stifle investment and prolong reliance on foreign fuel.
