According to a report by The Nigeria Employers’ Consultative Association (NECA) has expressed strong support for the Federal Government’s recent decision to impose a 15% tariff on imported petroleum products. NECA’s Director General, Wale Smatt Oyerinde, described the policy as a necessary collective “penalty” for decades of neglect of Nigeria’s local refineries, which have left the country heavily reliant on imported fuel. He emphasised that even advanced economies adopt similar protectionist measures to safeguard their domestic industries.
According to NECA, the 15% tariff will create conducive conditions for the revival and growth of the local refining sector by making imported fuel less competitive. This is expected to spur investments in domestic refining capacity, reduce Nigeria’s dependence on imports, and ultimately help stabilise the Nigerian naira by alleviating pressure on foreign exchange reserves.
Oyerinde acknowledged concerns that the tariff could lead to increased fuel prices initially, but stressed that the long-term benefits of boosting local production and industrial growth outweigh these short-term costs. He called for the government to extend such protectionist policies beyond petroleum to other sectors, particularly manufacturing, to reduce the country’s overall import dependency.
NECA also advocated for a transitional period to allow businesses to adapt to these changes, suggesting that, if necessary, a one- or two-year moratorium could be provided for local industries to build capacity and meet domestic demand.
The Federal Government approved the tariff increase through communication to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority. This move is part of a broader strategy to promote fuel self-sufficiency, protect local industries, and strengthen Nigeria’s economic resilience.
With the local refining sector poised for revitalisation, NECA believes that this policy will not only stimulate industrial growth and job creation but also help reduce the volatility of the naira, bringing more stability to the nation’s economy over time.
