Nigeria Employers’ Consultative Association Supports New Import Tariff on Petroleum Products
The Nigeria Employers’ Consultative Association (NECA) has expressed strong support for the recent decision by the Federal Government to impose a 15 per cent import tariff on certain petroleum products. The association views this move as a timely and necessary step toward protecting and promoting local refining capabilities in the country.
In a statement released on Sunday, NECA’s Director-General, Adewale-Smatt Oyerinde, emphasized that it is illogical for a nation endowed with crude oil to continue importing fuel when its own refineries are capable of producing these products. He pointed out that the current state of Nigeria’s four refineries—described as comatose—has been partly attributed to the ongoing reliance on imported petroleum products.
“The imposition of the tariff on imported fuel is not only timely but essential,” Oyerinde stated. “This policy is a significant step toward promoting local value addition, strengthening domestic refining capabilities, conserving foreign exchange, and advancing Nigeria’s industrialization plans.”
Oyerinde urged the government to demonstrate commitment and confidence in local production to expedite economic recovery, promote local manufacturing, strengthen the naira, and attract investors. He added that, if implemented effectively, the policy could accelerate Nigeria’s journey toward energy sufficiency and broader economic development.
He also noted that the tariff would provide some relief to the naira, allowing pressure on foreign exchange for imports to be redirected toward other critical sectors. This, he argued, would help stabilize the economy and create a more favorable environment for investment.
“Moreover, this initiative will assure genuine local manufacturers and investors in the oil and gas industry that the government is committed to supporting their investments with policies that protect them and ensure the sector’s sustained development,” Oyerinde said.
However, Oyerinde stressed the importance of ensuring that the policy does not backfire. He called on the government to establish all necessary parameters and manage the dynamics of the policy to prevent price distortions and other negative consequences. He highlighted the need to resolve the complexities of the naira-for-crude arrangement to guarantee an effective and regular supply of crude to local refiners.
“This and other related issues must be addressed promptly to prevent the policy from becoming counterproductive. A policy designed to promote local refining and ensure regular supplies at the lowest possible price should not become a burden for Nigerians.”
Oyerinde concluded by emphasizing that the task of promoting local production of goods, not only in the oil and gas sector, should be a priority in the government’s policy framework. He argued that this approach would contribute to the resuscitation of the real sector in the medium and long term.
The PUNCH reported that President Bola Tinubu had approved the 15 per cent import tariff on petrol and diesel, describing the policy as 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, on his official X handle, the new policy is “a bridge, not a burden,” aimed at transforming Nigeria’s petroleum landscape and securing long-term economic stability.
By endorsing the measure, NECA underscores the importance of policy consistency and regulatory support to revive local refineries, strengthen domestic production, and reduce Nigeria’s dependence on imported petroleum products.
Oyerinde’s comments highlight the potential of the tariff to create investor confidence, improve foreign exchange management, and catalyse growth in the local refining sector. If carefully implemented, the policy could mark a turning point in Nigeria’s drive toward energy sufficiency and industrial growth, ensuring that the country’s abundant crude resources are leveraged for domestic benefit.