Story: Uzuh Rita October 31,2025
Nigeria’s local oil refiners are set to benefit from a new government policy following President Bola Tinubu’s approval of a 15 percent import duty on refined petroleum products, including petrol and diesel.

The move, according to industry analysts, is designed to protect local refiners such as Dangote Refinery and modular plant operators from the influx of cheaper imported fuel that has long dominated the domestic market.

Before now, imported petrol and diesel enjoyed zero import duty, making it difficult for local producers to compete. However, with the new tariff in place, the federal government aims to encourage in-country refining, reduce import dependence, and stimulate job creation within the energy sector.

Energy experts say the decision could also stabilize the naira by reducing foreign exchange demand for fuel imports, while increasing government revenue through customs and excise collections.

“This is a strategic move that will level the playing field for local refiners,” said one downstream analyst. “It aligns with the government’s plan to make Nigeria self-sufficient in petroleum products.”

The new policy is expected to take effect immediately, with stakeholders predicting that local refining capacity will rise as more investors gain confidence in the sector’s long-term profitability.