Strategic Import Duty and Industrial Growth in Nigeria
Industrialists from Northern Nigeria have expressed support for the Federal Government’s decision to impose a 15 per cent import duty on petroleum products. This move is seen as a strategic initiative aimed at boosting local production, enhancing value addition within the oil and gas sector, and creating a more competitive environment for Nigerian manufacturers.
Muhammad Nura Madugu, chair of the Sharada-Challawa branch of the Manufacturers Association of Nigeria (MAN) in Kano, highlighted during a visit to the Dangote Group’s regional office in Abuja that local manufacturers are committed to aligning with progressive government policies designed to stimulate industrial development and promote local content. He emphasized that his members adopt a balanced approach when evaluating government policies, considering both their potential benefits and challenges for member industries and the nation’s economic growth.
Madugu noted that there are numerous business opportunities arising from the various derivatives of crude oil refining by the Dangote Refinery. He mentioned that his members are eager to leverage the vast potential created by this facility. Key derivatives obtained from crude oil refining include petrol, diesel, kerosene, jet fuel, and liquefied petroleum gas. Additional products include naphtha, bitumen, lubricating oils, and fuel oil, along with important petrochemical feedstocks such as linear alkylbenzene, ethylene, propylene, and butadiene. These serve as raw materials for producing plastics, detergents, synthetic fibres, and other industrial goods.
The courtesy visit followed the 2025 MAN Product Exhibition in Kano, an annual event sponsored by Dangote Industries Limited. Madugu praised Aliko Dangote, President of the Dangote Group, for his faith and resilience in advancing the Nigerian project. During the visit, the MAN team also presented Awards of Excellence to Mr. Aliko Dangote and Mrs. Fatima Wali-Abdurrahman, the Special Adviser on Strategic Relations and Projects to the Dangote Group President.
In her response, Wali-Abdurrahman expressed the company’s appreciation, emphasizing that Mr. Dangote is passionate about supporting the government in growing and developing the Nigerian economy. She stated that the company remains committed to promoting locally made products and driving job creation across the country. According to her, strong linkages between the refinery and local manufacturers will stimulate the growth of ancillary industries, create new value chains, and enhance the collective capacity to meet domestic and export demands.
Dangote recently announced plans to expand the refinery’s capacity to 1.4 million barrels per day, which is projected to generate approximately 65,000 jobs for Nigerians. Accompanying Madugu on the visit were the Vice Chairman (Bompai), Mr. Auwal Muhammad; the Executive Secretary, Mr. Ibrahim Garba; and Mr. Sani Shuaibu Sagagi, an official of the association.
Chairman of the Manufacturers Association of Nigeria (MAN), Kano-Jigawa Branch, Muhammad Bello Isyaku Umar, also praised the introduction of the new import duty on petrol and diesel, describing it as a policy capable of placing the nation’s economy on a stronger and more sustainable footing. He added that the policy will reduce the country’s volume of importation and high demand for foreign exchange, potentially improving the value of the currency.
Umar further explained that the new policy will encourage more investment in the oil sector, especially in refining petroleum, and increase government revenue. However, he cautioned that if there is not enough local supply, the policy could lead to higher fuel prices, increased transportation costs, and higher goods prices.
President Bola Tinubu approved the 15 per cent import tariff on petrol and diesel, calling the policy a strategic step to stimulate local refining and strengthen Nigeria’s energy independence. According to a statement by the Special Adviser to the President on Media and Public Communications, Sunday Dare, the new policy was described as “a bridge, not a burden,” aimed at transforming Nigeria’s petroleum landscape and securing long-term economic stability.
The Dangote Refinery, which commenced operations in 2024, has become a dominant refining giant in Nigeria’s downstream sector. With an installed capacity of 650,000 barrels per day, the facility claims it can meet Nigeria’s fuel demand. The Dangote Group spokesperson, Anthony Chiejina, assured that the refinery can meet Nigeria’s fuel demand, stating that this significant production capacity guarantees local supply, enhances energy security, and reduces dependence on imports.