FGN’s 15% Tax On Imported Fuel And Diesel: ECCIMA Supports “Made In Nigeria First” For Economic Revival
ECCIMA SUPPORTS “MADE IN NIGERIA FIRST” FOR ECONOMIC REVIVAL
The Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA) has examined the decision of the Federal Government to impose a 15% tax on imported petrol and diesel. The Chamber considers this a step in the right direction—one that will not only help grow the economy but also encourage local production and create more employment opportunities for our teeming youths.
ECCIMA has consistently maintained that the naira cannot appreciate if more than eighty percent (80%) of our needs remain import-dependent. The excessive importation of finished goods continues to weaken the value of the naira, particularly when such goods can be produced locally. We believe that imposing higher tariffs on imported products that can be manufactured within Nigeria will help protect and revitalize local industries.
The importation of refined petroleum products into Nigeria dates back to the 1990s, marking the beginning of a gradual economic decline. Since then, the naira has continued to depreciate. The inability of the Nigerian National Petroleum Company (NNPC) Limited to revive the three refineries owned by the Federal Government, coupled with the indiscriminate issuance of fuel importation licenses, has significantly worsened our economic challenges—challenges that have proven difficult to overcome.
Countries such as the United States of America and China have maintained strict policies discouraging the importation of goods that can be produced locally. These nations support indigenous industries to meet 100% of domestic needs and also to export. Satisfying local demand through local production strengthens a country’s balance of trade. Any government that seeks real change must adopt policies that support domestic industries—just as seen in the economic strategies of leaders like the U.S. President Donald J. Trump.
We commend the Chairman of the Dangote Group, Alhaji Aliko Dangote, for his visionary and determined efforts to restore Nigeria’s reputation in refined petroleum production through his investment in the Dangote Petroleum Refinery. The refinery is already meeting domestic needs while earning foreign exchange for Nigeria. More investments of this nature are crucial to saving and strengthening our economy.
While some may express concern about whether the Dangote Refinery can fully meet Nigeria’s domestic demand if high import taxes discourage fuel importation, we are optimistic that the planned expansion of the refinery’s capacity—from 650,000 barrels per day to 1.4 million barrels per day—will ensure adequate supply for national consumption.
Furthermore, ECCIMA calls for the issuance of more licenses to indigenous companies to establish refineries in Nigeria. Since oil remains the nation’s major source of foreign earnings, players in the sector who demonstrate the capacity to transform Nigeria from a net exporter of crude oil to a net exporter of refined petroleum products should be actively supported by the government and other stakeholders. The Federal Government should also eliminate bureaucratic bottlenecks that hinder local investors in obtaining refinery licenses. Such reforms will encourage more investors to join the industry, enhance competition, and ensure sufficient supply of petroleum products for both domestic and export markets. Nigeria can indeed become a global leader and the largest exporter of refined petroleum products if this policy is properly implemented.
ECCIMA fully supports every private sector initiative aimed at reviving local refining of our God-given crude oil.
Accordingly, we endorse any government policy that protects and promotes such private sector efforts. We therefore urge all stakeholders to support this policy, while calling on the government to allow more indigenous investors into the refining sector for the sustainable growth of the national economy.
Sir Odeiga Jideonwo
President, ECCIMA