By Adewale Sanyaolu
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has cautioned the federal government against implementing a blanket ban on imported goods, particularly petroleum products, warning that such a move could trigger unintended economic and supply chain disruptions.
The warning follows the federal government’s recent policy move to restrict the importation of foreign goods.
National President of PETROAN, Mr. Billy Gillis-Harry, expressed concerns that the policy could worsen Nigerian inflation and emphasised the need for energy security.
“Our primary concern is the availability and affordability of petroleum products in Nigeria to meet the daily consumption volume of over 46 million litres of petrol and other petroleum products.
We must ensure that our policies do not compromise energy security, as this could have far-reaching consequences for the economy and the wellbeing of Nigerians,”.
The association further called for increased investment in local refining infrastructure and support for domestic industries to enhance their competitiveness.
He added that by applying wisdom and caution, PETROAN believes that the government can achieve its objectives while minimising potential disruptions to the economy.
The association while applauding President Bola Tinubu for the bold step warned against the potential Pitfalls to avoid economic shock.
PETROAN commended the government’s efforts to strengthen the domestic economy and promote local content, PETROAN emphasised the need for careful consideration to avoid unintended consequences.
The association further urged the Federal Government to ensure that the policy does not lead to shortages or price increases, particularly in the petroleum sector, where local refining capacity is still being developed.
PETROAN advised that essential and sensitive products, such as petroleum products, pharmaceuticals, and other highly consumable goods, should be exempted from the ban or have a waiver to ensure their continuous availability.
“This is because some products may not be readily available locally, or their local production may be insufficient to meet demand, leading to shortages and price hikes.
According to PETROAN, other factors that may necessitate importing goods include; unavailability of specialised technology or expertise locally, higher quality standards of imported goods, economies of scale favouring imports and strategic or critical nature of the product
Citing examples from other countries, PETROAN noted that even the United States, under the “America First” policy, has implemented targeted tariffs rather than blanket bans, allowing for flexibility and exemptions for critical goods.
The association added that the advantages of banning the importation of foreign goods inldue; boosting local Economy by promoting local content because the policy can stimulate economic growth, create jobs, and increase domestic production.
Othera are; reduction in both trade deficit and reliance on foreign goods can help narrow the trade deficit and conserve foreign exchange.
PETROAN worried that banning imports can lead to shortages of essential goods, particularly if local production is insufficient or unreliable, adding that limiting importation can result in higher prices for consumers, as local producers may not be able to meet demand efficiently, leading to inflationary pressures.