President Bola Tinubu has approved the introduction of a 15 percent ad-valorem import duty on Premium Motor Spirit (PMS), commonly known as petrol, and Automotive Gas Oil (AGO), or diesel.
The approval, which is set to impact the nation’s fuel prices, was contained in a letter dated October 21, 2025, signed by Damilotun Aderemi, the President’s Private Secretary, and addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Rationale and Projected Impact
The decision follows a formal request from the FIRS, which sought to impose the duty on the Cost, Insurance, and Freight (CIF) value of imported petrol and diesel. The FIRS explained that the move aims to align import costs with current domestic economic realities.
“The President has approved the application of 15 percent ad-valorem import duty on the cost, insurance, and freight (CIF) value of imported diesel and premium motor spirit (PMS),” the letter stated.
The new tariff is projected to raise the landing cost of petrol by approximately ₦99.72 per litre, a significant development that could potentially lead to a corresponding increase in pump prices nationwide.
As of the time of this report, both the NMDPRA and FIRS have yet to release official statements specifying when the new duty will officially take effect.
Source: Punch Nigeria
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