The federal government has again been commended for the introduction of a 15 per cent tax on petroleum products imported into the country.
This latest applause came from the Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA), which submitted that the levy aligns with the country’s Nigeria First policy aimed to promote locally made goods.
The group described the 15 per cent fuel tax as a bold and strategic move that would stimulate economic growth, encourage local production, and create employment opportunities for Nigeria’s growing youth population.
The importation of refined petroleum products dates to the 1990s—a period that marked the beginning of Nigeria’s gradual economic decline. Since then, the naira has consistently been depreciated.
The inability of the Nigerian National Petroleum Company (NNPC) Limited to revive the nation’s three government-owned refineries, coupled with indiscriminate issuance of fuel import licenses, has deepened these economic challenges.
Globally, leading economies such as the United States and China have adopted strict policies to discourage the importation of goods that can be produced locally. These nations prioritize domestic production to meet internal demand and drive exports, thereby strengthening their balance of trade. Nigeria must embrace similar strategies to achieve sustainable economic transformation.
For ECCIMA, it has long maintained that the Naira cannot appreciate while over 80 per cent of the nation’s needs remain import dependent.
Excessive importation of finished goods continues to weaken the currency, especially when these goods can be produced locally.
By imposing higher tariffs on products that can be manufactured within Nigeria, the government is taking a critical step toward protecting and revitalizing local industries.
The organisation said it was happy with the foresight of the chairman of the Dangote Group, Mr Aliko Dangote, to build the Dangote Petroleum Refinery in Lagos to meet the fuel demands of Nigeria.
The facility, located in the Lekki area of Lagos, currently has the capacity to refine about 650,000 barrels per day. But there are plans to expand this to 1.4 million barrels per day.
ECCIMA noted that Dangote Refinery and others should be supported to survive, tasking the federal government to issue more licenses to indigenous companies for refinery development.
It stressed that oil remains the country’s primary source of foreign earnings, and stakeholders with the capacity to transform the country from a net exporter of crude oil to a net exporter of refined products should receive full government support.