The Nigeria Employers’ Consultative Association (NECA) has voiced support for the proposed 15 % fuel import tariff, arguing that it could boost local production of petroleum products. NECA Director General Wale Smatt Oyerinde called the policy a step in the right direction because it would encourage the development of domestic refining capabilities. He stressed that the tariff should apply only to imported petroleum products, not to those produced locally, and pointed out that even developed nations such as the United States are adopting protectionist measures to safeguard their own industries.
Oyerinde argued that Nigeria has no excuse for failing to protect its own industries, especially given the collapse of its four refineries. The Federal Government has approved the 15 % tariff increase and tasked the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority with its enforcement. While some critics warn that the move could raise the landing cost of petroleum products, NECA maintains that the policy’s benefits outweigh its drawbacks.
The NECA chief suggested extending similar protectionist policies to other sectors, such as manufacturing and the real sector, to increase local production and reduce reliance on imports. He emphasized the need to prioritize domestic output and curb the import of goods that can be produced locally, citing the adverse effects of imports on foreign exchange and the broader economy.
Looking beyond petroleum, the NECA director general said the organization is analyzing the potential advantages of applying import duties to all goods that can be manufactured domestically, provided that adequate arrangements are made to meet local demand. He proposed a one‑ to two‑year moratorium to allow businesses to integrate backward and expand their local production capacity.
The proposed 15 % fuel import tariff represents a significant development in Nigeria’s effort to revitalize its refining sector and lessen dependence on imported petroleum products. As the policy is implemented, its impact on the economy and the local refining industry will become clearer.
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