Table of Contents
- Approval of Import Duty
- Objectives of the Policy
- Economic Impact
- Support for Local Refining
- Long-term Benefits
President Bola Ahmed Tinubu’s recent endorsement of a 15 percent import duty on petrol and diesel has been characterized as a “bold and strategic initiative” aimed at transforming Nigeria’s energy sector and fostering self-sufficiency.
According to Sunday Dare, the president’s special adviser on media and public communication, this policy is intended to diminish the country’s excessive dependence on imported petroleum products while promoting local refining and job creation.
“It is well-known that President Bola Ahmed Tinubu has sanctioned a 15 percent import duty on petrol and diesel — a bold and strategic initiative aimed at reshaping Nigeria’s energy landscape,” Dare stated in a release.
Dare elaborated that Nigeria’s prolonged reliance on imported fuel has depleted foreign exchange reserves and cost the nation thousands of potential jobs, despite being a major crude oil producer.
He indicated that the president’s new policy would “reverse that trend by fostering local refining, enhancing domestic capacity, and ensuring that Nigeria’s oil wealth translates directly into national prosperity.”
He mentioned that the new import duty would render imported fuel less competitive, thereby benefiting local refineries such as the Dangote Refinery and other modular plants emerging across the nation.
Dare further noted that as local refining expands and the domestic supply chain becomes more robust, Nigerians will start to witness more stable fuel prices and economic growth.
“By making imported fuel less competitive, the government is shifting the market in favor of local refineries like Dangote and other modular plants, establishing the foundation for a self-sustaining and resilient energy sector,” he asserted.
He stressed that this measure should not be perceived as a burden on Nigerians but rather as a crucial step toward national development.
“This policy is therefore not a burden, but a bridge — transitioning from dependence to independence, from vulnerability to strength,” he remarked.
Dare pointed out that the long-term advantages of the 15% import duty would encompass increased investment in local production, the emergence of new industrial activities, and a more robust economy supported by domestic energy capacity.
Frequently Asked Questions
What is the purpose of the 15% import duty on petrol and diesel?
The 15% import duty aims to reduce Nigeria's reliance on imported fuel, promote local refining, create jobs, and enhance national prosperity.
How will this policy affect local refineries?
The policy will make imported fuel less competitive, giving local refineries like the Dangote Refinery an advantage and encouraging investment in domestic production.
What are the expected long-term benefits of this policy?
Long-term benefits include increased investment in local production, new industrial activities, and a stronger economy supported by domestic energy capacity.
