The Nigeria Employers’ Consultative Association has praised the federal government’s recent decision to impose a 15 per cent import tariff on certain petroleum products, describing it as a timely and necessary step to support and stimulate local refining.

In a statement released on Sunday in Abuja, NECA’s Director-General, Mr. Adewale-Smatt Oyerinde, stated that “it is absurd for a country blessed with crude oil to spend decades importing petrol and diesel.”

Oyerinde noted that the prolonged importation of these products has contributed to the near-dormant state of the country’s four government-owned refineries, which are capable of producing them.

He said, “The imposition of the tariff on imported fuel is not only timely but essential.”

“This policy is a significant step toward promoting local value addition, strengthening domestic refining capabilities, conserving foreign exchange (FOREX), and advancing Nigeria’s industrialization plans.”

The Director-General further emphasized that, to accelerate economic recovery, boost local production, strengthen the Naira, and attract investors, the government must show clear commitment and confidence in domestic production.

“If implemented effectively, this policy will accelerate Nigeria’s challenging journey toward energy sufficiency and economic development. It will also provide the Naira with some breathing room, allowing pressure on FOREX for imports to be redirected toward other critical needs.

“Moreover, this initiative will assure genuine local manufacturers and investors in the oil and gas industry that the government is committed to supporting their investments with policies that protect them and ensure the sector’s sustained development,” he said.

Oyerinde also stressed that the government must take all necessary measures to ensure the policy does not backfire.

He added that it is crucial for the government to set clear parameters and carefully manage the policy’s dynamics to avoid price distortions and other unintended consequences.

“It is crucial to resolve the complexities of the Naira-for-crude arrangement to guarantee an effective and regular supply of crude to local refiners.
“This and other related issues must be addressed promptly to prevent the policy from becoming counterproductive,” Ayorinde said.

He, however, remarked that a policy aimed at promoting local refining and ensuring consistent supplies at the lowest possible cost should not become a burden on Nigerians.