President Bola Tinubu has approved the implementation of a 15 percent ad-valorem import duty on premium motor spirit (PMS), popularly known as petrol, and automotive gas oil (AGO), commonly known as diesel.
The approval was contained in a letter dated October 21, 2025, signed by Damilotun Aderemi, the President’s Private Secretary, and addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
According to the document obtained by TheCable, the President’s approval followed a request by the FIRS seeking to apply a 15 percent duty on the Cost, Insurance, and Freight (CIF) value of imported petrol and diesel in order to bring import costs in line with current domestic realities.
The letter stated that implementing the new duty would result in an estimated ₦99.72 increase per litre of petrol.
Tinubu’s decision marks a significant shift in Nigeria’s downstream policy framework, coming at a time when the government continues to navigate the fallout of fuel subsidy removal and the volatility of global crude prices.
Industry stakeholders say the new duty could raise pump prices further and add pressure to inflation, but fiscal authorities argue that the measure is necessary to enhance revenue generation and align Nigeria’s tax regime with global standards.
The development is expected to have ripple effects across the energy market, transportation, and manufacturing sectors, where diesel and petrol remain key cost drivers.
