The Nigeria Labour Congress (NLC) has cautioned that the newly approved 15 per cent import duty on petrol and diesel could backfire if not properly managed, warning that the policy may open the door for price manipulation and consumer exploitation by powerful players in the downstream sector.
NLC’s spokesperson, Benson Upah, in a reaction on Monday, November 3, said the policy would only be beneficial if Nigeria’s local refineries can meet national demand without creating opportunities for monopolies to exploit citizens.
“If local capacity can meet local demand without distortions or manipulations to achieve an undue business advantage at the expense of the consumer, this will be quite okay because we need to protect local industries,” Upah stated.
He warned, however, that the tariff could harm consumers if it is used to shield monopolies or manipulate fuel prices.
“On the other hand, if this design is intended to guarantee local supply at the outset only for the taps to be turned off shortly after, then this will be terrible for the consumer, for it will represent a minimum of a whopping 15 percent additional tax on imported products,” he added.
Naijaonpoint recalls that President Bola Tinubu last week gave approval for the implementation of a 15 per cent import tariff on petrol and diesel, a move that has sparked heated debate among economic experts, industry stakeholders, and consumer groups.
According to the policy, the new tariff could push the pump price of imported petrol to about ₦964.72 per litre in Lagos, up from the current ₦925, representing an increase of ₦99.72 per litre when fully implemented.
The Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, said the move was aimed at protecting local refineries such as Dangote Refinery and NNPC Limited’s facilities, by discouraging importation and encouraging domestic production.
He explained that the measure aligns with the government’s broader strategy to strengthen local refining capacity and reduce Nigeria’s dependence on imported fuel.
Tariff to Encourage Local Refining – Experts
However, Energy analyst and Managing Partner of TENO Energy Resources, Dr. Tim Okon, during an interview with Daily Post said the import duty was designed to address Nigeria’s long-standing reliance on foreign refined products and help consolidate the impact of the Dangote Refinery on the nation’s oil sector.
“The 15 per cent import tariff is to address dependence on imports. Additional importation may not be needed with Dangote Refinery’s capacity in terms of fuel, diesel, and other refined petroleum products,” Okon explained.
He noted that the policy could also generate additional government revenue if importation persists despite local production.
Okon, a former Group Executive Director of the NNPC, said market forces should determine pricing.
“If there is a market for imported petrol despite Dangote pricing, so be it. What matters is competitive supply and fair market rules under the Petroleum Industry Act,” he added.
Policy Could Encourage Cheap Imports – PETAN
On his part, the Publicity Secretary of the Petroleum Technology Association of Nigeria (PETAN), Lucky Akhiwu, described the tariff as a positive step toward industrial protection but cautioned against unintended consequences.
“It is a good policy. My only concern is that I hope this will not lead to the importation of cheap refined products into the country,” Akhiwu said.
He confirmed that fuel prices may increase temporarily when the policy is implemented but expressed optimism that Dangote Refinery’s production could offset potential supply shocks.
“We cannot rule out fuel price adjustments; however, Dangote has promised to boost local output,” he added.
Naijaonpoint reports that latest development has divided opinion within both political and business communities.
Presidential aide, Sunday Dare, described the policy as “a bridge, not a burden,” arguing that it would reduce import dependency and stimulate domestic refining.
Similarly, Chief Executive Officer of Financial Derivatives Company Limited, Bismark Rewane, said the measure was economically sound as it was “targeted at encouraging local production and stabilising the refinery market.”
However, dissenting voices within the ruling party and the downstream sector have faulted the timing and impact of the policy.
An All Progressives Congress (APC) chieftain and businessman, Ayiri Emami, said the burden of the tariff would fall squarely on the masses.
“This kind of policy will not hurt marketers, it will hurt ordinary Nigerians,” he said.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) also criticised the tariff through its spokesperson, Chinedu Ukadike, arguing that it would inevitably push up the cost of petrol.
“The new duty will increase pump prices and worsen the hardship faced by Nigerians,” Ukadike stated.
Dangote Refinery Backs Tariff Policy
Industry data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) show that Dangote Refinery currently supplies about 20 million litres of petrol daily out of the country’s estimated 45–50 million litres daily consumption.
However, the company recently announced that it has increased production to over 45 million litres daily, expressing full support for the 15 per cent import duty as a way to protect local investment.
“The tariff ensures that domestic refiners operate on a level playing field and that Nigeria benefits from its own refining capacity,” a Dangote Refinery executive said.
Currently, petrol sells between ₦925 and ₦960 per litre in Lagos and Abuja, though recent data show some major retailers, including NNPCL, Eterna, and AA Rano, have reduced pump prices to around ₦940 per litre.
Economists and energy experts have urged the government to implement the policy transparently to avoid exploitation, ensure competitive pricing, and protect consumers.
They advised that local refineries must maintain adequate supply levels to prevent scarcity and profiteering.
“The 15 per cent tariff can drive local growth if managed properly. But it must be balanced with strong regulatory oversight,” one market analyst told Daily Post.
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