Otedola Backs Tinubu on 15% Tariff on Imported Petrol, Diesel

Nigeria businessman, Mr Femi Otedola, has thrown his weight behind the recent 15 per cent tariffs on imported petrol and diesel by President Bola Tinubu.

Last week, President Tinubu greenlit the introduction of a measured import tariff on Premium Motor Spirit (PMS) and diesel, aimed at reinforcing national energy security, safeguarding local refining capacity, stabilising the downstream market, and ensuring a fair and competitive pricing environment aligned with the the President’s agenda.

In a statement on X, formerly known as Twitter, Mr Otedola, who once made his fortunes in the deregulated diesel sector, commended the President for “his bold and decisive step” in implementing a 15 per cent import tariff on petrol and diesel.

According to him, the policy represents a crucial move towards safeguarding local industries that have made substantial investments in domestic production and refining capacity.

Business Post reports that Nigeria still imports over 60 per cent of its refined products as the local 650,000 barrels per day Dangote Refinery is not at optimal production.

The introduction has raised worries, with stakeholders saying Nigerians will have to pay more for petrol and diesel.

However, Mr Otedola, an ally of Mr Aliko Dangote, noted that Nigeria’s industrial base has suffered from the unchecked importation of cheaper and often substandard goods for decades.

He said the practice has crippled once-thriving sectors such as textiles, local vehicle assembly, and manufacturing.

“We cannot afford to allow history to repeat itself within the energy sector, particularly now that Nigeria possesses the capacity to meet its petrol and diesel requirements locally,” he wrote on X on Monday.

“This tariff not only protects the billions of dollars already invested in refining infrastructure but also underscores the government’s commitment to driving industrialisation, creating employment, and building a sustainable energy future for our nation,” he added.

He also said the policy will also help establish a stable and sustainable pricing regime, which he believes will contribute to controling inflation and long-term economic stability.

“President Tinubu’s ability to deploy policy as a catalyst for economic transformation is truly commendable,” he noted.

He also backed other efforts by President Tinubu that will steer the country towards realising its ambition of becoming a $1 trillion economy.