Oil Marketers: Nigeria’s 15 percent fuel import tariff can have unintended effects on consumers, SMEs

*Clement Isong, Executive Secretary, Major Energy Marketers Association of Nigeria, says members are concerned about likely consequences of implementing the 15 percent new tariff on oil imports, emphasising the move will have far-reaching effects on energy consumers, transporters, and small-scale businesses already contending with escalating inflation in the economy

Isola Moses | ConsumerConnect

Following the Federal Government’s recent approval of 15 percent import tariff on the Premium Motor Spirit (PMS), also known as petrol, as well as diesel, the Major Energy Marketers Association of Nigeria (MEMAN) has cautioned authorities that the proposal may jack up product pump price above N1,000 per litre.

ConsumerConnect reports Clement Isong, Executive Secretary of MEMAN, noted this during a joint webinar organised by the Association and S&P Global Commodity Insights Friday, November 7, 2025, in Lagos.

The webinar particularly examined the possible implications of the new oil imports tariff policy on the downstream petroleum market in the country.

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Isong also warned if the 15 percent fresh tariff on oil imports is implemented, the move would have far-reaching effects on energy consumers, transporters, and small-scale businesses already contending with rising inflation in the Nigerian economy.

Why we’re deeply concerned, by Executive Secretary

Restating MEMAN members’ apprehension about what may result from implementation of the import tariff, Isong declared: “We are deeply concerned that such a tariff could push petrol to nearly N1,000 per litre in Lagos and over N1,020 in inland cities.”

The Executive Secretary also explained that diesel prices could rise to prices between N1,164 and N1,194 per litre, depending on marketing margins.

According to him, this possible scenario could jack up costs of logistics, and eventually be reflected in food prices for consumers in Nigeria.

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Describing the proposed import tariff policy as “potentially regressive”, MEMAN Chief as well warned against deepening hardship, if the policy is not matched with measures to protect the poor and the vulnerable in the economy.

Isong further contended that “low-income earners and small business operators will feel the immediate impact,” he said.

He, therefore, urged the Federal Government to ensure transparency and accountability in fuel pricing the downstream petroleum sector.

He also stated: “Government should publish open-market price computations and end-user prices regularly so that Nigerians can see what drives pump costs.”

On political economy of oil imports tariff policy

In terms of the economics behind the government fuel imports tariff regime, Isong acknowledged though President Tinubu’s administration must have formulated it to help local oil refiners to recover costs and compete globally, it could also increase the landed cost of imported fuel after all.

Isong said: “Ultimately, importers will pass these additional costs to consumers”, warning that such a cost transfer could destabilise the domestic oil market.

The Executive Secretary further noted: “If prices rise sharply, smaller importers may be squeezed out, leaving only a few dominant players.”

Urging strong regulatory oversight, Isong stated “the Nigerian Midstream and Downstream Petroleum Regulatory Authority must be vigilant to ensure fair competition and nationwide product availability.”

He proposed alternatives that could achieve the same policy goals without affecting consumers, as he recommended tariff caps to mitigate the impacts on Nigerians.

He suggested the “government can adopt a phased or conditional tariff tied to verified increases in domestic refining capacity.

“A fixed cap of N50 per litre or $20 per metric tonne could limit the burden on ordinary Nigerians.”

According to him, there is a need for market transparency, as he urged reforms in border and Customs operations.

Isong equally harped on the proactive exchange rate management that could serve as natural protection for local refiners.

He added: “An undervalued Naira can make imports more expensive and domestic production more attractive.”

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