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By Sunday Ani
The Petroleum Refineries Owners Association of Nigeria (PETROAN) has commended the Federal Government’s decision to ban the importation of foreign goods produced locally. It also stressed the need for careful implementation of the policy to avoid unintended consequences.
A statement by PETROAN public relations officer (PRO), Dr Joseph Obele said the policy would strengthen the domestic economy and promote local content. It also called for caution in its implementation to avoid the economic shock that could follow.
The association urged the 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.
It 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,” the association said.
PETROAN noted that other factors that could 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.
It cited examples from other countries, noting 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 equally listed the advantages of banning the importation of foreign goods to include boosting the local economy by promoting local content, stimulating economic growth, creating jobs and increasing domestic production.
“It will also reduce the trade deficit by reducing reliance on foreign goods, which can help to narrow the trade deficit and conserve foreign exchange,” it added.
PETROAN equally listed the disadvantages of the ban, potential shortages and price increases.
But the National President of PETROAN, Dr .Billy Gillis-Harry, however, expressed concerns that the policy could worsen the country’s inflation and emphasised the need for energy security.
He said: “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 called for increased investment in local refining infrastructure and support for domestic industries to enhance their competitiveness.
