Nigeria’s government has introduced a 15% import duty on petrol and diesel, sparking debate among industry stakeholders. The policy, aimed at protecting local refineries, is expected to lead to higher fuel prices. According to Zacch Adedeji, Executive Chief of the Federal Inland Revenue Service, the new tariff could result in petrol prices increasing to approximately N964.72 per liter in Lagos State.

The move is intended to reduce Nigeria’s dependence on imported petroleum products and encourage local refining. The Dangote Refinery, which supplies 20 million liters of petrol daily, has welcomed the policy. The refinery’s current output is expected to increase, potentially reducing the need for imports. However, some industry experts have expressed concerns that the policy could lead to price manipulation and exploitation of consumers.

Sunday Dare, a presidential spokesperson, described the policy as a “bridge, not a burden” on Nigerians, aimed at boosting domestic capacity and reversing the country’s dependency on imports. The Centre for the Promotion of Private Enterprise also supports the tariff, citing its potential to protect local refineries, including Dangote and Nigerian National Petroleum Company Limited.

However, not all stakeholders are in favor of the policy. Ayiri Emami, an All Progressives Congress chieftain, argued that the burden of the import duty will be passed on to ordinary Nigerians. The Independent Petroleum Marketers Association of Nigeria also opposes the tariff, warning that it will increase petrol prices.

Industry experts, including Dr. Tim Okon, Managing Partner of TENO Energy Resources Limited, and Lucky Akhiwu, Publicity Secretary of the Petroleum Technology Association of Nigeria, have shared their perspectives on the policy. While some see the tariff as a necessary step to promote local production, others fear it could lead to unintended consequences, such as price manipulation and consumer exploitation.

The Nigerian government’s decision to introduce the 15% import duty on petrol and diesel is a significant development in the country’s oil and gas sector. As the policy takes effect, it is likely to have far-reaching implications for the industry, consumers, and the economy as a whole. With the current daily consumption of petrol estimated at 45-50 million liters, the impact of the policy will be closely watched by stakeholders and consumers alike.