The recent approval of a 15% import duty on petrol by President Bola Tinubu has sparked outrage among Nigerians, with labour unions and economists warning that the policy will worsen living conditions and further raise fuel prices.
The directive, issued on October 21 to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), mandates the immediate implementation of the new tariff.
Government projections suggest the duty could increase the landing cost of petrol by about ₦99.72 per litre, potentially pushing pump prices in Lagos to around ₦964.72 per litre. Experts fear this will further burden citizens already struggling with surging food prices, transport costs, and inflation.
While the government argues that the measure aims to boost revenue and encourage local refining, critics insist it will only deepen economic hardship and fuel inflation.
Former Chief Economist at Zenith Bank, Marcel Okeke, described the move as “ill-timed and counterproductive,” warning that it could trigger a new wave of cost-push inflation.
> “The government says it wants to protect local refiners, but we barely have any. Apart from Dangote, none is operational. Instead of taxing importers, the government should incentivize local refineries to produce,” Okeke said.
He added that continued dependence on imported fuel drains foreign reserves and exposes the naira to further depreciation.
Similarly, Chris Onyeka, Assistant Secretary-General of the Nigeria Labour Congress (NLC), condemned the decision as “anti-people” and accused the government of using protectionist language to shield the Dangote Refinery from competition.
> “Public refineries are moribund, and Dangote Refinery operates within an export zone not bound by Nigerian laws. So, who exactly is this policy protecting?” Onyeka queried.
He warned that the cost would eventually fall on consumers, as importers would transfer the added expense to pump prices.
> “When importers pay higher duties, they simply pass it on to Nigerians. With high gas prices and unreliable power, citizens have no alternative,” he said.
Onyeka also accused the administration of creating monopolies, arguing that similar trends had played out in other industries dominated by Dangote.
> “We said this would happen — that once the refinery starts, the government will weaken competition. It’s the same pattern seen with sugar and salt,” he added.
Both labour and economic experts called on the government to reconsider the policy, warning that another petrol price hike could deepen hardship, stoke inflation, and erode public trust in the administration’s economic agenda.
