In a bold move that has sent shockwaves through the nation, President Bola Tinubu has greenlit a staggering 15 percent ad-valorem import duty on petrol and diesel imports into Nigeria. This dramatic policy shift is being hailed as a protective measure for local refineries, but at what cost to the everyday consumer? Get ready for higher pump prices!

In a letter that has sparked heated debates, Tinubu directed the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority to implement this tariff immediately. The letter, signed by his Private Secretary, Damilotun Aderemi, was released following a proposal from FIRS Executive Chairman, Zacch Adedeji, who seems to be the mastermind behind this controversial initiative.

Adedeji's proposal claims that the 15 percent duty will align import costs with domestic market realities, but critics are questioning whether this is just a smokescreen for a government that is out of touch with the struggles of its citizens. He insists that this measure is part of ongoing reforms aimed at boosting local refining and stabilizing prices, but many are left wondering if the administration's so-called "Renewed Hope Agenda" is merely a catchy slogan.

“The core objective of this initiative is to operationalize crude transactions in local currency,” Adedeji stated, but will this really lead to a stable and affordable supply of petroleum products? With petrol imports still making up a staggering 67 percent of national demand, the implications of this new duty are far-reaching and potentially disastrous for consumers.

According to projections, this 15 percent import duty could hike the landing cost of petrol by an eye-watering N99.72 per litre. While officials claim that even with this adjustment, pump prices in Lagos would remain around N964.72 per litre, this figure is still significantly below regional averages. But will consumers really feel the relief, or is this just another case of government spin?

As Nigeria ramps up efforts to reduce its dependence on imported petroleum products, the stakes are high. The 650,000 barrels-per-day Dangote Refinery has begun production, but will it be enough to offset the impending price hikes? Stakeholders across the industry are bracing for impact, and the government's commitment to fostering a self-sufficient oil economy is about to be put to the ultimate test.

Stay tuned as we continue to monitor this unfolding story. Will this new import duty be the savior of local refineries, or will it spell disaster for consumers?