The Nigeria Employers’ Consultative Association has voiced support for the Federal Government’s decision to impose a 15 per cent tariff on petrol and diesel imports. The policy, NECA says, could stabilise the Naira and encourage investment in local refining capacity.
Adewale-Smatt Oyerinde, NECA’s Director-General, said the tariff is a crucial step towards protecting domestic industries and promoting value addition within the petroleum sector. He noted that Nigeria’s continued reliance on imported fuel has hampered the revival of the country’s four existing refineries.
Local refining and industrialisation in focus
Oyerinde highlighted that the tariff would promote domestic production, conserve foreign exchange, and support broader industrialisation goals. “It is absurd for a country blessed with crude oil to spend so many years importing petrol and diesel,” he said.
The policy is expected to signal to investors that the government is committed to creating an enabling environment for the oil and gas sector. If implemented effectively, it could accelerate Nigeria’s journey towards energy self-sufficiency and economic growth.
Implications for consumers and the economy
For ordinary Nigerians, the fuel import tariff could help reduce pressure on foreign exchange reserves, potentially stabilising the Naira. This, in turn, may prevent excessive fluctuations in fuel prices and curb inflationary pressures, easing the cost of living for households.
Oyerinde cautioned, however, that the government must manage the policy carefully to avoid price distortions or unintended economic hardship. Effective management of the Naira-for-crude arrangement is vital to guarantee a regular supply of fuel to local refiners without increasing costs for consumers.
