The President Bola Tinubu-led Federal Government has approved a 15% import duty on Premium Motor Spirit (petrol) and diesel, a policy insiders allege is designed to give the Dangote Refinery a significant advantage over independent fuel importers.
According to a restricted memorandum dated October 21, 2025, and obtained by Chronicle Reporters, the new tariff policy—described as a “market-responsive import framework”—was circulated from the State House to the Attorney-General of the Federation, the Federal Inland Revenue Service (FIRS), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The memo, signed by Damilotun Aderemi, Private Secretary to the President, conveyed President Tinubu’s approval for the new tariff framework, which applies a 15% duty on the Cost, Insurance, and Freight (CIF) value of imported petrol and diesel.
Officially, the policy is aimed at “reinforcing national energy security” and “protecting local refiners.” However, multiple industry sources who spoke with Chronicle Reporters alleged that the real intent is to tilt the downstream market in favour of the Dangote Refinery, owned by billionaire industrialist Aliko Dangote.
“This memo reveals plans to uplift Dangote Refinery to the detriment of others,” one source familiar with the development said. “Dangote will be exempt because of its Export Processing Zone (EPZ) classification, allowing it to import crude and export refined products tax-free, while independent marketers pay the new levies.”
Under the new framework, independent importers will pay the 15% import duty, a 7.5% Value Added Tax (VAT), and a 5% petroleum consumption tax, bringing total levies to over 30%.
At current landing cost levels, the import duty alone would add roughly ₦99.72 per litre to the price of imported petrol, potentially pushing the average Lagos pump price to ₦964.72 per litre ($0.62).
The memo estimates that the tariff could generate up to ₦14 billion daily in new government revenue, which will be remitted into a dedicated Federal Government account managed by the Nigeria Revenue Service (formerly FIRS).
Economists, however, warn that the new import duty could worsen inflation and trigger fuel scarcity if independent marketers scale back imports.
“It’s ironic that a government claiming to promote competition is imposing taxes that benefit only one refinery,” a senior energy economist told Chronicle Reporters. “Once Dangote controls supply, he sets the price. That’s monopoly, not reform.”
When contacted, an official of the Dangote Group dismissed the allegations as false.
“This allegation is rubbish and not true,” the official said. “How can we be importing what we are producing massively? There is nowhere the government mentioned Dangote in their memo. We have nothing to do with it.”
Meanwhile, industry observers say the timing and selective application of the tariff could reshape Nigeria’s fuel supply dynamics and further consolidate Dangote’s dominance in the domestic petroleum market.