…Says It Will Negatively Impact On Economy
The Centre for the Promotion of Private Enterprise (CPPE), a frontline organized private sector (OPS) advocacy group in Nigeria, has expressed its concern over the suspension of the 15 per cent import duty on petrol and diesel by the Federal Government, cautioning that the fiscal measure could undermine the local refining capacity, weaken long-term industry competitiveness, and undermine Nigeria’s overall energy security framework.
The Chief Executive Officer of the Centre, Dr. Muda Yusuf, who stated the position of the group in the latest Policy Brief issued in reaction to the suspension of the import duty on refined petroleum products, pointed out that Nigeria was now entering a critical phase in its push for energy independence and industrial resilience.
The CPPE maintained the suspension of the import duty, initially designed to support emerging private refineries and stimulate local value addition, has created a competitive imbalance that heavily favours import-driven supply channels over domestic production.
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It noted that the suspension of the duty, which is to protect early-stage refining investments, conserve foreign exchange, safeguard jobs, and promote backward integration, had eroded that confidence and exposed domestic refiners, including the Dangote Refinery and several modular refinery operators, who committed multi-billion-dollar capital on the assurance of policy stability, to competition shaped by superior international logistics, cheaper energy, and more efficient financing conditions.
The OPS advocacy group noted that local refiners continued to operate in a high-cost environment driven by expensive self-generated power, logistics bottlenecks, elevated finance costs, security risks, and inefficient port systems. These constraints, it said, make pricing parity with imported petroleum products unattainable without protective measures.
It added that reverting to heavy reliance on fuel imports would further reopen Nigeria to global price shocks, geopolitical disruptions, and supply insecurity, warning that the country risks a repeat of the supply volatility that previously undermined public refineries and deepened the fiscal burden of subsidy regimes.
The organisation warned that renewed import dependence will heighten pressure on the naira, fuel inflation through exchange rate pass-through, expand balance of payments deficits, and weaken macroeconomic stability. It added that domestic refining activity supports extensive industrial value chains spanning petrochemicals, plastics, logistics, fabrication, and engineering services. A shift back to import dependence, it noted, effectively relocates these jobs and economic opportunities to foreign markets.
The CPPE also flagged the risk of weakened investor sentiment, emphasising that frequent policy reversals create uncertainty for domestic manufacturers, financiers, and global investment partners. According to the brief, such uncertainty threatens major national assets, including the Dangote Refinery and modular refinery ecosystem.
The organisation maintained that protection for domestic refining is aligned with global industrial practice, citing the United States, the European Union, India, and China as economies that actively shield strategic sectors.
It added that Nigeria already applied similar protection under the Import Adjustment Tax List across sectors like cement, agro allied industries, steel, pharmaceuticals, and automobiles.
The brief noted that price stability and domestic refining are not mutually exclusive objectives, arguing that the right policy mix, including targeted fiscal incentives, improved logistics infrastructure, transparent pricing frameworks, and guided import quotas, can strengthen supply security while managing pump prices.
The CPPE recommended the reinstatement of the 15 per cent import duty to restore competitive balance and protect investor commitments and also advocated targeted support measures such as reduced port charges, tax credits, guaranteed crude supply, moderated foreign exchange access for essential inputs, and stronger investment in pipeline and storage infrastructure.
This is even as it urged the government to anchor policy direction on a stable, multi-year protection framework under the Nigeria First industrial strategy while enhancing market monitoring to track domestic output, pricing behaviour, import volumes, and sector compliance.
It frowned at short term measures that could undermine domestic refining capacity place energy security, job creation, and national economic sovereignty at risk and described the Dangote and modular refineries as strategic national assets that required consistent policy backing to achieve Nigeria’s long-term development goals.
It clarified: “Nigeria must avoid short-term measures that jeopardize long-term national interests. The suspension of the 15% import duty puts at risk, Energy security, Industrialization, Foreign exchange stability, Job creation, Backward integration, and National economic sovereignty
“Protecting domestic refining capacity is an urgent national imperative. Reinstating protective measures, supporting local refiners, ensuring policy predictability, and regulating import volumes are essential steps toward securing Nigeria’s industrial future.
“The Dangote Refinery and emerging modular refineries are transformative national assets. Safeguarding them aligns squarely with Nigeria’s long-term economic and strategic goals”, the CPPE added.
It would be recalled that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) last Thursday announced the suspension of the planned 15 per cent duty on imported petroleum products.
The NMDPRA’s Director, Public Affairs Department, George Ene-Ita, stated that the government was no longer considering going ahead with implementing the petrol import duty.
He stated: “It should also be noted that the implementation of the 15 per cent ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view.”
