The Nigeria Employers’ Consultative Association (NECA) has expressed support for the Federal Government’s 15 per cent import tariff on petrol and diesel, saying it will strengthen the Naira, encourage investment, and boost domestic refining.
Mr. Adewale-Smatt Oyerinde, NECA Director-General, said in a statement on Sunday that the policy is timely and essential for protecting local industries.
“It is absurd for a country blessed with crude oil to spend so many years importing petrol and diesel,” Oyerinde said, noting that the poor state of Nigeria’s four refineries is partly due to continuous importation of products that could be produced locally.
He added that the tariff would promote local value addition, strengthen refining capacity, conserve foreign exchange, and support industrialisation. “If implemented effectively, this policy will accelerate Nigeria’s journey toward energy sufficiency and economic growth,” he said.
Oyerinde also noted that the tariff could relieve pressure on the Naira by reducing foreign exchange demand for fuel imports and reassure local manufacturers and investors that government policies aim to protect their investments.
However, he urged the government to manage the policy carefully to avoid price distortions and other unintended consequences. He emphasized that the Naira-for-crude arrangement should guarantee regular crude supply to local refineries.
“A policy meant to promote local refining and ensure regular supplies at the lowest cost should not become a hardship for Nigerians,” he said, calling on the government to prioritize local production across all sectors to revive the real economy in the medium and long term.
