Nigeria imposes 15% import duty on petrol, diesel to support local refiners

Nigeria has approved a 15% import duty on petrol and diesel, according to a presidential memo seen by Reuters on Thursday, as the government seeks to protect multi-billion-dollar investments in domestic refining by curbing an influx of cheaper fuel.

The measure is part of broader fiscal reforms aimed at boosting non-oil revenues ahead of planned tax changes in 2026, the government said. It follows last year's removal of fuel subsidies and foreign exchange controls. "This reform will accelerate Nigeria's path toward fuel self-sufficiency, protect consumers and investors alike, and stabilize the downstream petroleum market," the memo stated.

President Bola Tinubu signed off on the new import duty on October 21. Nigeria, Africa's top oil producer, has long sought to end its reliance on imported fuel.

That ambition got a boost last year when the 650,000 barrels-per-day Dangote refinery began operations. However, the refinery - Africa's largest, built at a cost of $20 billion - has faced competition from imported products priced below cost recovery, the memo added. Pump prices currently stand at around 928 naira ($0.6322) per litre. Officials estimate the duty could raise prices by around 99 naira.

Nigeria has experienced fuel shortages in the past due to supply challenges. ($1 = 1,467.8100 naira)