The Federal Government’s proposed 15 per cent import tariff on petrol and diesel will strengthen the Naira and attract investment.
The Director-general, Nigeria Employers’ Consultative Association (NECA), Adewale-Smatt Oyerinde, stated this in a statement on Sunday.
While expressing support for the proposal, he said the policy is a welcome step toward protecting local industries and encouraging domestic refining of petroleum products.
“It is absurd for a country blessed with crude oil to spend so many years importing petrol and diesel,” he said.
He said that the comatose state of Nigeria’s four refineries could be partly attributed to the continuous importation of products that should be produced locally.
“The imposition of the tariff on imported fuel is not only timely but essential,” Oyerinde said.
He added that the policy would promote local value addition, strengthen refining capacity, conserve foreign exchange, and support Nigeria’s industrialisation agenda.
“If implemented effectively, this policy will accelerate Nigeria’s journey toward energy sufficiency and economic growth,” he said.
Oyerinde said the new tariff would also give the Naira some relief by reducing foreign exchange demand for fuel imports.
“It will assure local manufacturers and investors in the oil and gas industry that government policies are designed to protect and sustain their investments,” he added.
He, however, urged the Federal Government to manage the policy carefully to prevent price distortions and unintended effects.
“Government must establish necessary parameters and manage the dynamics of the policy to avoid negative consequences,” he said.
Oyerinde advised that the Naira-for-crude arrangement should be effectively managed to guarantee regular crude supply to local refiners.
“A policy meant to promote local refining and ensure regular supplies at the lowest cost should not become a hardship for Nigerians,” he said.
He called on government to prioritise policies that promote local production across all sectors of the economy.
“Promoting local production should be a key focus of government policy to revive the real sector in the medium and long term,” he
