The Nigeria Employers Consultative Association has thrown its weight behind the Federal Government’s approval of a 15 per cent import tariff on petrol and diesel, describing the move as a strategic step towards strengthening Nigeria’s local refining capacity and reducing dependence on imported fuel.
The association noted that the policy aligns with efforts to revive the nation’s economy and promote sustainable industrial growth.
Director General of NECA Adewale Smatt Oyerinde said the tariff would encourage private sector investment in domestic refining and support the establishment of a competitive downstream sector. According to him, the decision will “help build an efficient fuel supply chain that favours local production and employment creation” across the oil and gas industry.
Oyerinde stressed that the 15 per cent tariff is expected to protect local refiners from unfair competition posed by cheap imported products. He explained that the initiative is “a deliberate policy action that will safeguard local manufacturing, create jobs, stimulate value addition and ensure that Nigeria begins to benefit economically from its crude oil resources.”
He added that the move would also reduce pressure on Nigeria’s foreign exchange reserves by cutting down on fuel import bills. The NECA boss said the policy was timely, especially as the government pursues a transition from fuel importation to full scale domestic refining across existing and emerging facilities. “This is how nations develop strong industrial bases and we must not miss this opportunity,” he stated.
However, NECA urged the government to ensure that the tariff is implemented with proper regulatory oversight to avoid unintended consequences such as price manipulation or supply disruption. The association also called for incentives that would encourage investments in modular refineries, petrochemicals and other value chain industries.
NECA further appealed to the Federal Government to monitor the impact of the policy on consumers while providing targeted relief programmes where necessary. The body noted that a balanced implementation would guarantee long term benefits that include fuel price stability, growth in the refining sector and an increase in local content across the energy industry.
