More discordant tunes yesterday trailed the introduction of 15 per cent import tariff on premium motor spirit (PMS) by the federal government with major marketers under the aegis of Major Energies Marketers Association of Nigeria (MEMAN) declaring that the tariff imposition is tantamount to fuel import ban.

Executive Secretary of MEMAN, Mr. Clement Isong stated that the tariff would have significant impact on pump prices of PMS as well as diesel prices which may sell for about N1,100 and N1,200 per litre respectively while imposing fresh hardship on Nigerians.

He spoke during the MEMAN webinar hosted jointly with S&P Global Commodity Insights with the theme, “Fostering Competition and Innovation: Lessons from Deregulated Markets for Nigeria’s Energy Sector.”

Isong was corroborated by Research Director Fuels and Refining for S&P Global Commodity Insights, Tanya Stepanoba who stated that fuel supply from domestic refinery doesn’t meet the demand yet as Nigeria continues to import.

The discussion examined developments in the downstream petroleum industry in the wake of recent 15 per cent petrol import which has been generating discussion tunes in the country especially the oil and gas industry.

Daily Trust reports that the president’s approval was contained in a letter with reference no: PRES8197/HAGF/100/71/FIRS/40/88-2/NMDPRA/2, dated 21 October.

The letter was addressed to the Attorney General of the Federation and Minister of Justice, Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The letter, titled ‘Re: introduction of a market-responsive import tariff framework on Premium Motor Spirit (PMS) & Diesel,’ was signed by Damilotun Aderemi, the Private Secretary to the President.

The president’s approval followed a request by FIRS Chairman, Zacch Adedeji for the government to apply the tariff to align import costs with domestic realities.

Adedeji said the duty, applied to the Cost, Insurance, and Freight (CIF) value, is expected to increase petrol prices by approximately N99.72 per litre.

“The core objective of this initiative is to operationalise crude transactions in local currency, strengthen local refining capacity, and ensure a stable, affordable supply of petroleum products across Nigeria aligning with Your Excellency’s Renewed Hope Agenda for security and fiscal sustainability,” the FIRS said.

‘Tariff to add N122 to PMS price’

But MEMAN ES insisted that the 15 per cent tariff is way too high as it is tantamount to placing a ban on fuel import which is not good for energy security.

Isong confirmed that based on the current market trend and today’s landed costs, a 15 % tariff would add N122.46 to PMS (N827.24 to N949.70), pushing pump prices to about N998/L in Lagos and N1,028/L in many upcountry markets; diesel would rise to roughly N1,164-N1,194/L depending on margins.

According to him, the tariff is “extremely high” and should have been much lower to minimise the impact on consumers who would ultimately bear the cost.

While he supported the protection of the local refineries, Isong reiterated that imposition of tariff should have been the last consideration.

He said, “We think to protect our local refineries. Tariff is clearly one of them. We think that 15% tariff, first of all tariff, should be the last consideration. There are many other things that we are doing that we have done, the tariff as high as 15% is almost like a ban on imports.

“We think it’s a bit high. And we think it will have a significant impact on the pump prices. We have done some preliminary calculations. This would add N122 to the price of PMS as of today, this is our calculation.

“And as you know, especially for diesel, that increase in costs finds its way into increase in logistics costs, increase in transportation costs, and thereby into inflation. So we think that the number is relatively high.

“MEMAN advocates a public policy debate, transparent numbers, evidence-based, time limited relief, independent regulator verification and regulatory safeguards/guardrails to protect consumers from higher pump prices.”

The MEMAN ES stressed the need for the government to fix other state-owned refineries or get competent technical partners to revive the refineries.

According to him, there are many options “to bring in experts and capital” for the refineries to work.

He stated that it is extremely important for the four state-owned refineries to work alongside the 650,000-barrel per day Dangote Refinery and other modular refineries in order to promote fair and healthy competition.

He however stated that the more crude oil Nigeria can produce the better to support the evolving local refineries.

He said, “The more we can produce crude oil, the better for the country especially our quality of crude oil, light sweet, the better for the country.

“There is so much that we can do when we produce as much crude oil as we can. And if we can take that crude oil and fully beneficiate it at home and very much part of that and a very good example for the rest of the country is the Dangote Refinery. Its volume and the desire to go from 650,000 barrels per day to 1.4m barrels per day, I think if we can manage to have a few other refineries, I think the benefit to the country and the entire oil industry would be great and we would achieve what the petroleum policy wishes us to achieve.

“It would be the foundation, the bedrock of the growth of the economy as a whole. We are struggling a lot perhaps; there are conflict areas here and there perhaps but we are moving in the right direction. We have a lot of brilliant entrepreneurs, we have the assets in place, we have the resources in place. We have seen that the future is extremely positive.”

The S&P Commodity Director stated that the downstream sector in Nigeria is undergoing a “tectonic shift,” disclosing that fuel imports into Nigeria have started to slide.

She however stated that the 15 % import tariff could cause fuel prices to fluctuate, resorting to higher pump prices for the consumers.

Analysing how import duty affects domestic gasoline pricing, she said, “The fact that Nigeria is adding 15% import duty would widen the gap where the domestic price can fluctuate.

“If before, it was between 71 and 79, with addition of the import duty, the price will be anywhere between 71 and 84.”

She said, “Gasoline demand will remain strong. The Nigerian market will need other sources of supply and Dangote Refinery at current capacity level will not meet that gasoline demand. There is space for other large scale refineries.”

Northern industrialists back 15% fuel tariff

Daily Trust reports that despite the opposition by major marketers, Dangote Petroleum Refinery had stated that the facility now delivers 45m litres of premium motor spirit (PMS) otherwise known as petroleum.

Similarly, it said the facility also delivers 25 million litres of diesel on a daily basis while reaffirming its commitment to ensuring a steady and uninterrupted supply of the products nationwide.

Group Chief Branding and Communications Officer, Dangote Industries Limited, Anthony Chiejina insisted that its daily production capacity now exceeds the domestic demand.

Meanwhile, industrialists from Northern Nigeria have welcomed the Federal Government’s decision to impose a 15 per cent import duty on petroleum products.

They stated that the measure is a strategic move aimed at stimulating local production, enhancing value addition within the oil and gas sector, and creating a more competitive environment for Nigerian manufacturers.

Muhammad Nura Madugu, who chairs the Sharada-Challawa branch of the Manufacturers Association of Nigeria (MAN) in Kano, spoke during the Association’s visit to the Dangote Group’s regional office in Abuja.

He said local manufacturers will continue to align with progressive government policies designed to stimulate industrial development, promote local content, and position Nigerian companies to compete effectively on the global stage.

Madugu explained that his members adopt a balanced approach in assessing government policies, weighing their potential benefits and challenges both to member industries and to the nation’s economic development.

According to him, there are numerous business opportunities arising from the various derivatives of crude oil refining by the company, adding that his members are eager to leverage the vast potential created by the Dangote Refinery.

Mr. Madugu said some of the key derivatives obtained from crude oil refining include petrol, diesel, kerosene, jet fuel, and liquefied petroleum gas (LPG).

Others, he said are naphtha, bitumen, lubricating oils, and fuel oil, as well as important petrochemical feedstocks such as linear alkylbenzene (LAB), ethylene, propylene, and butadiene, all of which serve as raw materials to produce plastics, detergents, synthetic fibres, and other industrial goods.

The courtesy visit followed the 2025 MAN Product Exhibition in Kano, an annual event sponsored by Dangote Industries Limited.

He lauded Dangote Group President, Aliko Dangote, for his rare faith and resilience in advancing the Nigerian project.

The MAN team also presented Awards of Excellence to Mr. Aliko Dangote and to the Special Adviser on Strategic Relations and Projects to the Dangote Group President, Mrs. Fatima Wali-Abdurrahman.

In her reaction, Mrs. Wali-Abdurrahman expressed the company’s appreciation, adding that Mr. Dangote is passionate about supporting the government in growing and developing the Nigerian economy.

She said the company remains committed to promoting locally made products and driving job creation across the country.

According to her: “We believe that strong linkages between the refinery and local manufacturers will stimulate the growth of ancillary industries, create new value chains, and enhance our collective capacity to meet both domestic and export demands.”

Madugu was joined on the visit by the Vice Chairman (Bompai), Mr. Auwal Muhammad; the Executive Secretary, Mr. Ibrahim Garba; and Mr. Sani Shuaibu Sagagi, an official of the Association.

In a similar reaction, Chairman of the Manufacturers Association of Nigeria (MAN), Kano-Jigawa Branch, Muhammad Bello Isyaku Umar, lauded the introduction of the new import duty on petrol and diesel, describing it as a policy capable of placing the nation’s economy on a stronger and more sustainable footing.

He said: “It will reduce the country’s volume of importation and high demand for Foreign Exchange, and this will improve the value of our currency.”

Mr. Umar added, “The new policy will encourage more investment in the oil sector, especially in refining petroleum. It will also increase government revenue. If there is not enough local supply, the policy can lead to higher fuel prices, increase in transportation and goods.” (Daily Trust, but headline rejigged)