By John Umeh
The Federal Government’s decision to impose a 15 per cent import tariff on Premium Motor Spirit (PMS), commonly known as petrol, has triggered a wave of criticism from economic analysts, industry players, and consumer advocates, who warn that the move could push Nigerians to pay over ₦1 trillion more annually on fuel purchases.
The new tariff, approved by President Bola Ahmed Tinubu, is part of a broader fiscal reform intended to boost government revenue and promote local refining. However, critics say the timing is insensitive and will further strain Nigerians already reeling from the harsh effects of subsidy removal, inflation, and rising living costs.
According to an internal report from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigeria currently imports about 26.75 million litres of petrol daily. With the new tariff of roughly ₦99.72 per litre, consumers could face additional costs of nearly ₦2.7 billion daily — amounting to ₦973 billion yearly once the policy takes full effect.
Government defends policy as “economic correction”
In a memo endorsed by the Federal Inland Revenue Service (FIRS), Chairman Zacch Adedeji defended the policy, calling it a “corrective measure” designed to align import costs with local refining realities and strengthen Nigeria’s naira-based oil economy.
“The 15 per cent tariff will help balance the market, encourage local refining, and promote energy self-sufficiency,” Adedeji said. “It’s not a revenue-driven move but a strategy to ensure stability and fair competition.”
The government maintains that the policy will discourage the dominance of duty-free imported fuel and give domestic refineries — including Dangote Refinery and the rehabilitated NNPC facilities — a level playing field to thrive.
Experts, marketers push back
However, petroleum marketers and economists are not convinced. The Independent Petroleum Marketers Association of Nigeria (IPMAN) described the move as “ill-timed” and inconsistent with market deregulation principles.
IPMAN’s National Publicity Secretary, Chinedu Ukadike, said:
“We understand the government’s intention, but this is not the right approach. Tariffs will only drive up pump prices and hurt the people. True deregulation should allow market forces to determine costs, not government-imposed levies.”
He added that the government should focus on incentivising local refining through tax reliefs and crude allocation in naira, rather than penalising importers.
Economist and energy analyst Jeremiah Olatide echoed similar concerns, warning that Nigerians could soon pay over ₦1,000 per litre if both the tariff and a proposed 5 per cent fuel surcharge are implemented simultaneously.
“This policy will worsen inflation and reduce purchasing power,” he said. “The government should have waited until local refineries are fully operational before introducing such a levy.”
Fears of festive fuel scarcity
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) also expressed worry that the tariff could discourage importation, leading to fuel shortages during the festive period.
PETROAN President, Billy Gillis-Harry, urged the government to fast-track refinery rehabilitation and ensure consistent domestic supply before the end of the year to prevent a “Yuletide fuel crisis.”
“Without adequate local refining, the tariff could cripple imports and cause scarcity during Christmas,” he warned.
CPPE backs policy with conditions
Meanwhile, the Centre for the Promotion of Private Enterprise (CPPE) threw its support behind the government, calling the tariff a “strategic protectionist policy” aimed at shielding local industries and promoting national self-reliance.
In a statement, CPPE Director Muda Yusuf said:
“Nigeria’s overdependence on imports has weakened our economy. This tariff is a bold move to protect our emerging refining sector — but it must be complemented with the right fiscal incentives, stable energy supply, and infrastructure support.”
The bigger picture
While the Tinubu administration insists the 15 per cent tariff will stabilise the oil market and boost revenue, many fear it will have the opposite effect — inflating costs, disrupting supply, and deepening hardship.
For millions of Nigerians already struggling with rising transport fares, food prices, and electricity costs, the new tariff represents yet another financial blow — one that could reshape the economic landscape heading into 2026.
