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The Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji, has stated that President Bola Ahmed Tinubu has recently approved a 15 percent import duty on petrol and diesel to better align import costs with domestic realities.
Adedeji provided this clarification in a memo addressed to President Bola Ahmed Tinubu.
This announcement follows a report that emerged on Thursday, indicating that Tinubu, the leader of Africa’s most populous nation, has approved a 15 percent import duty on petrol and diesel.
The consequence of this decision is that Nigeria is expected to incur an additional cost of approximately 99.72 naira per litre for imported petrol and diesel in the near future.
In discussing the new tax, Adedeji emphasized that the intention is not to increase revenue but to implement corrective measures that align import costs with domestic realities.
He highlighted that this initiative aims to promote domestic refining and address the existing misalignment between local refiners and marketers.
Adedeji noted that the current price disparity between locally refined products and import parity pricing has led to market instability.
“While domestic refining of petrol has started to increase and diesel self-sufficiency has been achieved, price instability remains, partly due to the misalignment between local refiners and marketers,” he stated.
“At current CIF levels, this results in an increase of approximately 99.72 naira per litre, which adjusts imported landed costs closer to local cost recovery without restricting supply or inflating consumer prices beyond sustainable levels.
“Even with this adjustment, estimated pump prices in Lagos would still fall within the range of N964.72 per litre ($0.62), which remains significantly lower than regional averages, such as Senegal ($1.76 per litre), Côte d’Ivoire ($1.52 per litre), and Ghana ($1.37 per litre),” he further clarified.
DAILY POST reports that this new tax has sparked outrage among Nigerians and various stakeholders.
On Thursday, Ayiri Emami, a chieftain of the All Progressives Congress in Delta State, urged President Tinubu to retract the duty.
Meanwhile, economist and CEO of Financial Derivatives Company Limited, Bismark Rewane, remarked that the tax is beneficial for the country as it aims to encourage local production.
Frequently Asked Questions
What is the new import duty on petrol and diesel?
The new import duty approved by President Bola Ahmed Tinubu is set at 15 percent for both petrol and diesel.
How will this duty affect fuel prices in Nigeria?
The import duty is expected to add approximately 99.72 naira per litre to the cost of imported petrol and diesel, impacting overall fuel prices.
What is the purpose of the new import duty?
The goal of the new import duty is to align import costs with domestic realities and to encourage local refining, rather than simply increasing revenue.
