The Centre for the Promotion of Private Enterprise (CPPE) has supported the recent 15 per cent import duty imposed on refined petroleum products, describing it as “a positive and corrective measure” that could spur investment in local refining, conserve foreign exchange, and stimulate job creation.
In a new policy brief, CPPE CEO, Dr. Muda Yusuf, noted that Nigeria’s prolonged dependence on imports has weakened its productive base, undermined competitiveness, and left the economy vulnerable to external shocks.
He pointed out that Nigeria’s continued importation of refined petroleum products remains one of the country’s biggest economic weaknesses, draining foreign reserves and worsening fiscal instability.
CPPE stated that industrialisation cannot be achieved through “indiscriminate trade liberalization,” urging policymakers to adopt a calibrated protectionist framework that nurtures emerging industries while building competitiveness over time.
“No country has achieved industrialization through unrestrained exposure to imports. Strategic protectionism is not economic isolation—it is a pathway to global competitiveness through domestic strength,” CPPE stated.
Drawing parallels with global examples, CPPE noted that industrial success stories such as China, South Korea, and Malaysia relied heavily on protectionist measures during their formative decades. These countries, the group explained, safeguarded their infant industries, promoted local content, and gradually opened up to global competition after building sufficient internal capacity.
The report also cited the United States’ recent industrial policies, including subsidies and local manufacturing incentives, as evidence that protectionism remains a legitimate tool for economic growth, even in advanced economies.
CPPE emphasised that Nigeria must take a similar approach, adding that “producers should compete with fellow producers, not importers.”
It added that both local and foreign investors should be encouraged to manufacture within the country rather than rely on imports.
CPPE described the continued importation of refined petroleum products as one of Nigeria’s most damaging economic weaknesses, resulting in a persistent drain on foreign reserves and fiscal instability.
It welcomed the 15 per cent tariff as a timely policy intervention that could help restore domestic refining capacity.
“This modest protection will enable refineries such as Dangote Refinery, NNPCL refineries, and modular operators to thrive,” CPPE noted. “It is a balanced and necessary step toward energy self-sufficiency and economic resilience.”
The brief compared the oil sector with other industries that benefited from structured protection, including flour milling, agro-processing, and pharmaceuticals—all of which recorded growth, backward integration, and local value addition following tariff adjustments.
The organisation emphasised that exposing local manufacturers to global competition without addressing structural challenges, such as high energy costs, poor infrastructure, and limited access to finance, creates what it called “policy-induced disadvantage.”
To ensure that protectionist policies yield long-term gains, the group recommended complementary measures, including low-cost financing, reliable energy supply, infrastructure investment, and streamlined regulations.
“Protection must be strategic, time-bound, and performance-based,” the CPPE advised, adding that “Once domestic industries achieve stability, Nigeria should transition to export competitiveness.”
The organisation also called for enhanced monitoring and evaluation mechanisms to ensure that protection encourages innovation, productivity, and price moderation rather than rent-seeking or inefficiency and urged the federal government to sustain the 15 per cent import duty on refined petroleum while expanding similar industrial support to sectors like steel, petrochemicals, and agro-processing.
