The Centre for the Promotion of Private Enterprise (CPPE) has expressed support for the Nigerian government’s decision to impose a 15 per cent import duty on petrol and diesel. According to Dr Muda Yusuf, CPPE’s Chief Executive Officer, the new tariff is a forward-looking policy aimed at protecting the country’s local refineries, including Dangote and the Nigerian National Petroleum Company, as well as modular refineries.
The CPPE believes that this policy, when complemented with broader industrial support measures, represents a positive step towards promoting domestic production and reducing reliance on imports. Nigeria’s over-reliance on imported goods has weakened its productive base, eroded competitiveness, and exposed the economy to external shocks. The 15 per cent import duty on refined petroleum products is expected to provide the necessary policy support for domestic refineries to thrive and restore Nigeria’s refining capacity.
This move is seen as a pragmatic approach to building domestic strength and promoting global competitiveness. The CPPE emphasizes that protectionism, when disciplined, is not about closing borders, but rather about empowering domestic industries to engage with the global market from a position of strength. The new tariff is a sector-wide proposition that supports all current and future domestic investors in refining and related industries.
President Bola Ahmed Tinubu recently approved the 15 per cent import duty on petrol and diesel, a policy that has garnered mixed reactions. The CPPE’s endorsement of the policy highlights its potential to transform Nigeria’s industrial landscape, particularly if accompanied by complementary reforms. By promoting domestic production and reducing foreign exchange exposure, the policy aims to strengthen Nigeria’s economy and enhance its global competitiveness.
The imposition of the import duty is a significant development in Nigeria’s efforts to revitalize its refining sector and reduce its dependence on imported petroleum products. As the country navigates the implications of this policy, it is essential to monitor its impact on the economy and the refining sector. The CPPE’s support for the policy underscores the need for a comprehensive approach to promoting domestic production and enhancing Nigeria’s industrial capabilities.