The Lagos Chamber of Commerce and Industry (LCCI) has advised the Federal Government to adopt a balanced, phased approach in the implementation of the newly introduced 15 per cent import tax on petrol and diesel.
The LCCI gave the advice in a statement signed by its Director-General, Dr. Chinyere Almona.
While acknowledging the government’s intention to strengthen Nigeria’s local refining capacity and reduce import dependence, it pointed out that the policy, if not carefully managed, could trigger unintended economic consequences.
The LCCI noted that while the measure aligns with the country’s broader industrial and energy self-sufficiency goals, the timing and sequencing of its implementation are critical.
It said the current state of domestic refining capacity raises concerns about the ability of local refineries to meet national demand if fuel importation is discouraged too quickly, adding that Nigeria is already grappling with inflationary pressures, rising production costs, and supply chain disruptions, and a sudden increase in fuel prices could further aggravate the situation.
“The business community is currently facing significant cost-of-living pressures, logistics challenges, and inflationary strains. Any additional cost shock, such as increased fuel prices, would ripple through key sectors including transportation, agriculture, manufacturing, and trade—ultimately worsening the burden on consumers and small businesses,” the statement read in part.
The LCCI emphasised that discouraging fuel imports is a necessary step toward achieving domestic energy security and encouraging investments in local refining.
However, it stated that without sufficient refining capacity, a premature imposition of the tax could result in fuel shortages, higher pump prices, and inflationary effects that would undermine the very objectives of the policy.
The chamber recommended that the government create a comprehensive framework for crude oil supply to domestic refineries in naira rather than foreign exchange, a move it said would improve cost efficiency, stabilize local production, and strengthen the value chain.
“Our interest lies in building a diversified downstream sector where multiple refineries, modular plants, and logistics firms can thrive under a level playing field. Transparency, consistency, and fairness must be at the core of this process,” the Chamber stated.
It also urged the government to resolve ongoing labour union issues and create an enabling environment that promotes industrial harmony and private sector confidence.
The LCCI urged the government consider postponing the implementation of the policy until the government demonstrates tangible progress in supporting local refineries, adding that during this transition period, authorities should empower local refiners through an efficient “crude-for-naira” supply chain that guarantees adequate and affordable crude supply.
According to the Chamber, once local refining capacity is firmly established, the import tax would naturally discourage fuel importation, promote the use of locally refined products, and yield multiple economic benefits—including job creation, foreign exchange conservation, a stronger naira, and increased government revenue.
