Follow Us on Google
By Adewale Sanyaolu
The Centre for the Promotion of Private Enterprise (CPPE) has commended the Federal Government’s decision to impose a 15 per cent import duty on refined petroleum products, describing it as a positive and corrective step toward reviving Nigeria’s domestic refining industry and promoting economic self-reliance.
The Director/CEO of CPPE, Dr. Muda Yusuf, in a policy brief on Sunday, said the tariff represented a pragmatic move to protect local refineries such as Dangote Refinery, the Nigerian National Petroleum Company Limited (NNPCL) refineries, and emerging modular refineries from unfair foreign competition.
According to Yusuf, “The 15 per cent import duty on refined petroleum products, petrol and diesel, is therefore a welcome development and a progressive and corrective measure.” He explained that the modest level of protection would stimulate industrial expansion, conserve foreign exchange, create jobs, and promote macroeconomic stability.
CPPE recommended sustaining the 15 per cent import duty as part of a broader industrial strategy, expanding backward integration incentives in sectors like petrochemicals, steel, and agro-processing, and ensuring that protectionist measures remain performance-based and time-bound.
“The 15 per cent tariff on refined petroleum products is a forward-looking policy that can transform Nigeria’s industrial landscape if reinforced with complementary reforms,” Yusuf stated. He added that “this is not merely about a single refinery; it is a sector-wide proposition that supports all current and future domestic investors in refining and related industries.”
Other News
CPPE observed that decades of refined product importation had drained foreign reserves, weakened fiscal stability, and eroded economic sovereignty. It said the new tariff, if sustained, would provide the foundation for restoring domestic refining capacity and strengthening Nigeria’s industrial base.
Yusuf argued that no nation had achieved meaningful industrialisation through unrestricted trade liberalisation. Citing global examples, he noted that countries such as China, South Korea, India, and Malaysia built their industrial strength through inward-looking strategies, protecting infant industries and developing local value chains before opening up to global competition.
He explained that “strategic protectionism provides the enabling environment for industrial evolution” by shielding emerging industries from premature exposure to unfair competition. He said this approach is not about economic isolation but about creating the conditions for domestic industries to grow strong enough to compete globally.
Yusuf highlighted how other sectors in Nigeria have benefited from structured protection. According to him, the flour milling sector, for instance, enjoys combined import charges exceeding 70 per cent, while the agro-processing industry operates under an average tariff above 30 per cent. Similarly, import restrictions in the pharmaceutical sector have encouraged local manufacturing and promoted health sovereignty.
“In this context, a 15 per cent duty on refined petroleum products is modest, balanced, and necessary to restore Nigeria’s refining capacity and fiscal resilience,” Yusuf explained.
CPPE, however, cautioned that for such measures to yield sustainable results, they must be complemented with targeted fiscal incentives, low-cost financing, improved infrastructure, reliable energy supply, and streamlined regulations. “These would help reduce production costs, enhance efficiency, and eventually stabilise consumer prices.”
