Tinubu’s 15% fuel duty sparks controversy

In a move shaking the core of Nigeria’s energy market, President Bola Tinubu has signed off on a sudden 15% import duty on fuel and diesel, Lagos, October 30, 2025

This tariff, effective immediately, aims to shield local refineries from foreign petroleum products but at what cost?

This bold policy was put forward by Federal Inland Revenue Service (FIRS) Executive Chairman Zacch Adedeji, intending to boost the domestic fuel sector and stabilize the downstream market.

However, this controversial decision is sparking heated arguments across the nation—consumers, industry insiders, and political analysts are sharply divided.

A Blow to Consumers, A Boost for Local Refineries?

The imposed duty will increase landing costs of petrol and diesel by nearly 100 naira per liter, an alarming rise that threatens to push pump prices in Lagos close to 965 naira.

For ordinary Nigerians, already grappling with inflation and economic challenges, this may soon translate into heavier financial burdens at the fuel pump.

Proponents defend the tariff as a necessary step to promote energy self-reliance, echoing President Tinubu’s Renewed Hope Agenda, which prioritizes domestic production and economic sovereignty.

The policy is expected to invigorate local refineries, reduce dependency on imports, and ultimately secure Nigeria’s energy future.

Yet, for many critics, the tariff reeks of economic elitism.

The Dangote Refinery, notably exempt from this tax, stands to reap disproportionate benefits, fueling fears of a monopoly that could stifle competition and inflate prices further.

This imbalance raises questions about whether ordinary Nigerians will pay more while powerful industrial players consolidate wealth.

Energy Policy or Political Favoritism?

Observers are quick to highlight the glaring exemption granted to the Dangote Refinery, Africa’s largest privately-owned refinery.

This special treatment contradicts the policy’s stated goal of fair competition and self-reliance.

Instead, it appears to favor corporate heavyweights aligned with political interests.

Local markets have already responded with anxiety.

Wholesalers and distributors warn that increased costs will trickle down, sparking inflationary pressures not only on fuel but on transportation, goods, and services nationwide.

The Stakes for Nigeria’s Economy

The government argues that the import duty will encourage refineries to ramp up capacity, sparking job creation and technological advancement.

However, experts warn that abrupt policy shifts without corresponding infrastructure improvements risk exacerbating fuel scarcity and black market activities.

President Tinubu finds himself walking a tightrope between fostering local industry and managing public backlash.

Citizens demand transparent communication and immediate measures to cushion the impact on vulnerable populations.

Voices from the Streets: Outrage and Uncertainty

Meet Nkechi, a Lagos commuter: “Fuel is already expensive. Now, how are we supposed to afford daily transport?

This is a slap to the working class.” Her frustration echoes across cities as many fear this is just the beginning of hard economic days.

Meanwhile, refinery workers cautiously welcome the duty, hoping for increased job security and investment.

Yet, they also question if the government has concrete plans beyond imposing tariffs to sustain long-term growth.

What Next for Nigeria’s Fuel Market?

As this new fuel import tax shakes the foundations of Nigeria’s petroleum trade, all eyes turn to President Tinubu’s administration.

Will this policy cement energy independence, or will it backfire, deepening inequality and price woes?

Nigeria’s fuel story is now a flashpoint for broader debates about governance, economic justice, and national priorities. T

he unfolding drama demands vigilance from policymakers and citizens alike.