How Nigeria’s 15% Petrol and Diesel Tariff Will Transform Local Industry — Brand Owners’ Perspectives
In a significant move aligned with the nation’s drive towards industrialisation and self-sufficiency, Brand Owners under the auspices of the Manufacturers Association of Nigeria (MAN) have publicly supported the Federal Government’s recent approval of a 15% import tariff on petrol and diesel. The statement, signed by MAN’s Director-General, Segun Ajayi-Kadir, underscores the organisation’s commitment to bolstering local content, nurturing indigenous manufacturing, and fostering the patronage of Made-in-Nigeria products.
A Strategic Step for Nigeria’s Industrial Future
MAN lauded the tariff as a patriotic and strategic policy that resonates with the Nigeria First agenda. Coming less than a month after MAN’s 53rd Annual General Meeting themed “Nigeria First: Prioritising Patronage of Made-in-Nigeria Products,” the policy reaffirms the government’s dedication to strengthening Nigeria’s local industries.
Segun Ajayi-Kadir emphasised that this move signals a proactive approach to safeguarding Nigeria’s patrimony, asserting national sovereignty, and ensuring energy security. “This tariff is a vital step towards promoting local value addition, enhancing domestic refining capacity, conserving scarce foreign exchange, and advancing Nigeria’s long-term industrialisation goals,” he stated.
Supporting Domestic Refining and Economic Stability
MAN’s position highlights the importance of implementing the Petroleum Industry Act (PIA) to enable the domestic supply of crude oil to local refineries, thereby reducing Nigeria’s dependence on imported refined petroleum. This is seen as a move to stabilise the Naira, attract investments, and create jobs within the energy and manufacturing sectors.
The association emphasised that Nigeria’s abundant oil resources must translate into more refined products produced locally. “Supporting local refining capacity through appropriate policies will conserve foreign exchange, stabilise the economy, and foster industrial growth,” Ajayi-Kadir noted.
Advocating for Transparent Implementation
While endorsing the tariff, MAN calls for transparent and well-coordinated implementation to ensure industry benefits without undue burden on consumers. Key recommendations include:
– Price Monitoring: Close oversight by regulators such as PPPRA and NMDPRA to prevent anti-competitive practices.
– Transition Support: Ensuring fuel availability during the initial rollout, particularly ahead of the festive season.
– Reinvestment of Tariff Revenue: Channeling proceeds into energy infrastructure, refinery upgrades, and support schemes for industries.
– Support for Small and Medium Industries (SMIs): Incentives to cushion reliance on diesel-powered generators.
– Promotion of New Refineries: Creating an enabling environment to attract investments in modular and conventional refineries.
– Stakeholder Engagement: Continuous dialogue among industry players, regulators, and government agencies.
– Privatisation of Refineries: Accelerating the sale of government-owned refineries to focus on sustainable private sector-led operations.
A Call for Nigeria’s Energy and Industrial Sovereignty
Ajayi-Kadir concluded that the tariff marks a critical milestone in Nigeria’s journey towards energy independence and industrial sustainability. “This policy will catalyse local manufacturing, promote energy security, and reinforce Nigeria’s commitment to a self-reliant economy rooted in Made-in-Nigeria excellence,” he affirmed.
MAN remains committed to supporting the government’s Nigeria First policy, believing that the new import tariff will accelerate the country’s trajectory toward industrial growth, energy sovereignty, and economic resilience.