The Nigeria Employers’ Consultative Association (NECA) has backed the proposed 15 per cent fuel import tariff introduced by the President Bola Tinubu-led government.
According to NECA Director General, Mr Wale Smatt Oyerinde, the move will enhance local production of the commodity.
“We support the policy of a 15 per cent tariff on imported petroleum products — not on locally produced ones.
“If the 15 per cent tariff is the ‘punishment’ we must bear collectively for our recklessness in allowing our four refineries to collapse, then so be it,” he said when he was interviewed on Channels Television on Friday.
“Even developed nations like the US are introducing protectionist policies to protect their local industries. We don’t have much excuse not to do the same,” the NECA boss said.
Recall that President Tinubu had approved the 15 percent tariff increase in a letter sent to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, mandating its enforcement.
Critics have faulted the move, arguing it will lead to an increase in the landing cost of the product, with petrol and diesel expected to see further increment.
However, support for the programme has come from many quarters including energy businessman, Mr Femi Otedola, who backed move recently.
The NECA chief also believes the policy is a step in the right direction, adding that a similar actions should be extended to other areas.
“The president gave approval about two weeks ago, and the OPS has done its analysis. We’re also looking beyond petrol and diesel.
“To ramp up production in the manufacturing and real sectors, this kind of policy should extend there too. Why do we import things we can produce locally? It affects forex and other aspects of the economy,” Mr Oyerinde said.
“We’ve said that everything we can produce locally should attract import duties, provided we have made sufficient arrangements for local production to meet our needs. If we have to give businesses a one- or two-year moratorium to integrate backward, then fine, but let’s reduce the tendency to import,” he added.