Nigeria’s Dangote Petroleum Refinery is ramping up production to meet domestic petrol and diesel demand following the government’s approval of a new fuel import tariff. The measure, announced this week, imposes a 15 percent duty on imported fuel, aiming to protect recent investments in local refining.

The Dangote Group, which invested 20 billion US dollars in the 650,000 barrels-per-day refinery, has long sought to reduce Nigeria’s reliance on imported fuel. Anthony Chiejina, a company spokesperson, said the tariff would help curb the influx of substandard fuel and support domestic production.

“Our refinery is currently loading over 45 million litres of petrol and 25 million litres of diesel daily, exceeding national demand,” Chiejina said. Since petrol production began in September 2024, the refinery has contributed to lower pump prices and eased chronic fuel shortages.

However, the move has drawn concern from local fuel traders, who warn that poorly managed tariffs could undermine competition and risk creating a refining monopoly. Billy Harry, head of the Petroleum Products Retail Outlets Owners Association of Nigeria, said importers have traditionally acted as a price check against profiteering.

“Importers of petroleum products, which were a price-check mechanism, will be out of business if not properly managed. If local refineries are not regulated, monopoly could harm the market,” Harry said.