Fuel Tariff Sparks Debate: NLC, Stakeholders Warn of Price Hike as Tinubu Approves 15% Import Duty on Petrol, Diesel
Story: written by Peterson Joseph November 4,2025
President Bola Ahmed Tinubu’s recent approval of a 15% import duty on petrol and diesel has stirred nationwide debate, with labour unions and industry players warning that Nigerians will bear the brunt when the policy takes effect.
The new tariff, expected to add roughly ₦99.72 per litre to the cost of imported fuel, could push petrol prices in Lagos to about ₦964.72 per litre, up from the current ₦925, according to Federal Inland Revenue Service (FIRS) boss Zacch Adedeji.
Government officials describe the policy as a strategic move to boost local refining capacity and end Nigeria’s long dependence on imported petroleum products. Presidential spokesperson Sunday Dare said the tariff is “a bridge to self-sufficiency, not a burden,” adding that it will encourage domestic production.
Economic experts like Bismark Rewane, CEO of Financial Derivatives Company, and the Centre for the Promotion of Private Enterprise (CPPE) also argue that the duty will strengthen local refineries such as Dangote Refinery and NNPCL Refining Company.
However, several business leaders and trade associations have voiced strong opposition. APC chieftain Ayiri Emami criticized the move, warning that “marketers will survive, but ordinary Nigerians will suffer.” Similarly, Chinedu Ukadike of the Independent Petroleum Marketers Association of Nigeria (IPMAN) said the policy would “inevitably push pump prices higher.”
Energy expert Dr. Tim Okon, Managing Partner at TENO Energy Resources, defended the policy, describing it as essential to reduce import reliance and consolidate Dangote Refinery’s impact on the oil sector. He added that market forces should determine petrol pricing under the Petroleum Industry Act (PIA) framework.
Petroleum Technology Association of Nigeria (PETAN) spokesperson Lucky Akhiwu expressed mixed feelings, supporting the goal of industrial protection but warning against the possible inflow of cheap refined products that could undermine local output.
On its part, the Nigeria Labour Congress (NLC) cautioned that the policy could backfire if it allows price manipulation or monopolistic practices in the downstream sector. NLC spokesman Benson Upah said, “If local capacity truly meets demand, the policy is acceptable. But if it becomes an excuse for higher prices or exploitation, Nigerians will be the losers.”
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) shows that Dangote Refinery currently supplies about 20 million litres of petrol daily out of the 45–50 million litres consumed nationwide. Dangote has also stated that it supports the new import duty as part of efforts to strengthen Nigeria’s refining independence.
For now, pump prices remain between ₦925 and ₦960 per litre in Lagos and Abuja, though some marketers—like NNPCL, Eterna, and AA Rano—recently reduced their rates slightly to ₦940 per litre.
While the government insists the new tariff will ultimately benefit the economy, Nigerians are bracing for yet another fuel price surge in the weeks ahead.
