Dare Babalola
The Centre for the Promotion of Private Enterprise (CPPE) has expressed concern over the Federal Government’s suspension of the 15% import duty on petrol and diesel, warning that it poses a significant threat to Nigeria’s domestic refining capacity and energy security.
“The suspension of the import duty undermines the country’s efforts to achieve energy independence, deepen industrialization, and reduce vulnerability to external shocks,” said Dr. Muda Yusuf, CEO of CPPE.
He added, “The import duty was introduced to support emerging private refineries, promote backward integration, and ensure a level playing field for domestic producers. Investors, including the Dangote Refinery and modular refinery operators, made multi-billion-dollar commitments based on policy stability and the assurance of an environment that rewards local production.”
According to Dr. Yusuf, local refiners operate in a high-cost environment, facing challenges such as expensive energy, infrastructure gaps, and security-related risks, making it impossible for them to compete with imported products without protective measures.
“The suspension of the import duty is expected to increase pressure on the country’s foreign exchange, fuel inflation, and undermine macroeconomic stability. It may also lead to job losses and erode investor confidence in the sector,” he stated.
Dr. Yusuf emphasized that Nigeria must avoid short-term measures that jeopardize long-term national interests.
The CPPE boss said, “Protecting domestic refining capacity is an urgent national imperative, essential for achieving energy security, industrialization, and economic sovereignty.
“Reinstating protective measures, supporting local refiners, ensuring policy predictability, and regulating import volumes are essential steps toward securing Nigeria’s industrial future.”
Dr Yusuf highlighted that every major economy protects its strategic industries, citing examples such as the U.S., EU, India, and China, which have implemented policies to safeguard their domestic industries.
“Nigeria already maintains an Import Adjustment Tax List for strategic sectors such as agro-allied, cement, sugar, steel, pharmaceuticals, and automobiles. Extending similar protection to domestic refining is both logical and necessary,” Dr. Yusuf said.
CPPE is calling on the government to reinstate the 15% import duty, provide targeted production and infrastructure incentives, and strengthen policy predictability to support domestic refiners.
The organization also recommends that the government should strengthen monitoring mechanisms to track domestic production capacity, pricing patterns, import volumes, and compliance to protect consumers while preserving industry integrity.
The policy brief comes as Nigeria struggles to revive its economy and achieve sustainable growth, highlighting the need for careful consideration of policies that impact key sectors such as energy and industry.
