15% Fuel Duty Crucial, Says Otedola

Billionaire businessman and Chairman of First HoldCo Plc, Femi Otedola, has praised President Bola Tinubu for introducing a 15 percent import tariff on petrol and diesel, describing it as a decisive move to protect Nigeria’s domestic energy investments and strengthen the local refining industry.

In a statement posted on his X handle on Monday, Otedola lauded the policy as a bold step toward reducing the dominance of imported fuels and encouraging local production. He said the measure would ensure that companies investing heavily in refining and energy production are not undermined by cheaper foreign imports.

“I commend President Bola Ahmed Tinubu for his bold and decisive step in implementing a 15 percent import tariff on petrol and diesel,” Otedola wrote. “This policy is a crucial step towards safeguarding local industries that have made substantial investments in domestic production and refining capacity.”

The entrepreneur noted that Nigeria must avoid repeating the mistakes of the past when the influx of cheaper imported goods crippled local industries such as textiles, vehicle assembly, and manufacturing.

“For decades, our industrial base suffered from the unchecked importation of substandard goods that destroyed thriving sectors. We cannot allow that to happen in the energy sector, especially now that Nigeria has the capacity to meet its petrol and diesel needs locally,” he added.

Otedola further stated that the tariff would create market stability, inspire investor confidence, and support long-term price control in the domestic energy market. “This policy will help establish a stable pricing regime, contribute to controlling inflation, and strengthen overall economic stability,” he said.

He also praised Tinubu’s economic approach, describing it as visionary and aligned with the nation’s aspiration of building a $1 trillion economy. “President Tinubu’s use of policy as a catalyst for economic transformation is truly commendable. His focus on empowering local producers and promoting value addition represents the kind of leadership needed to drive Nigeria toward sustainable growth,” Otedola noted.

The Federal Government had earlier approved a 15 percent ad-valorem import duty on petrol and diesel as part of a new market-responsive tariff framework designed to protect local refineries and stabilize the downstream sector.

In a letter dated October 21, 2025, and addressed to the Federal Inland Revenue Service and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, President Tinubu directed immediate enforcement of the tariff.

According to the Special Adviser to the President on Media and Public Communications, Sunday Dare, the policy is “a bridge, not a burden,” intended to end Nigeria’s dependence on imported fuel and accelerate progress toward energy self-sufficiency.

Dare said the new framework would not only protect local investors but also lay the foundation for a sustainable and competitive energy market capable of driving long-term national development.