Nigeria’s President Bola Ahmed Tinubu has approved a 15% import duty on petrol and diesel, a move that has garnered mixed reactions from stakeholders. According to Bismarck Rewane, a prominent economist and CEO of Financial Derivatives Company Limited, this policy is beneficial for the country. Rewane explained that the import tariff is designed to encourage local production of petroleum products, thereby retaining jobs in Nigeria and discouraging imports.
The policy aims to reduce the country’s reliance on imported fuel, with data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority showing that 69% of petrol consumed in Nigeria is imported, while 31% is locally produced. This move is expected to place Dangote Refinery in a favorable position in the country’s oil and gas sector.
However, the introduction of the 15% import duty on petrol and diesel is expected to increase fuel prices, which could lead to more hardship for Nigerians. This has prompted criticism from some quarters, with Ayiri Emami, an All Progressives Congress chieftain in Delta State, urging President Tinubu to withdraw the tariff.
Rewane, speaking on Channels TV, emphasized that the import duty is a protectionist measure that encourages domestic production. He noted that importing goods creates jobs in other countries, rather than in Nigeria, and that import protection is beneficial for the country. The implementation of this policy is likely to have significant implications for Nigeria’s economy and the oil and gas sector.
As the country navigates this new development, it remains to be seen how the 15% import duty on petrol and diesel will impact the Nigerian economy and the lives of its citizens. The government’s decision to introduce this tariff is a clear indication of its commitment to promoting local production and reducing reliance on imported goods.
