Nigeria’s President Bola Ahmed Tinubu has approved a 15 % import duty on petrol and diesel, a decision that has drawn mixed reactions from stakeholders. According to Bismarck Rewane, a prominent economist and CEO of Financial Derivatives Company Limited, the policy is beneficial for the country. Rewane explained that the tariff is designed to encourage local production of petroleum products, thereby retaining jobs in Nigeria and discouraging imports.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority show that 69 % of petrol consumed in Nigeria is imported, while 31 % is produced locally. By reducing reliance on imported fuel, the policy is expected to place the Dangote Refinery in a favorable position within the nation’s oil and gas sector.
However, the 15 % import duty is also expected to raise fuel prices, potentially increasing hardship for Nigerians. This has prompted criticism from some quarters; Ayiri Emami, an All Progressives Congress chieftain in Delta State, urged President Tinubu to withdraw the tariff.
Speaking on Channels TV, Rewane 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 such import protection is beneficial for the nation.
The implementation of this policy is likely to have significant implications for Nigeria’s economy and its 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 the tariff signals a clear commitment to promoting local production and reducing reliance on imported goods.
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