Tinubu’s 15% Import Duty on Petrol is Good for Nigeria, Says Rewane, Marketers Disagree

Popular economist and chief executive of Financial Derivatives Company Limited, Bismark Rewane, has explained that President Bola Ahmed Tinubu’s approval of a 15 per cent import duty on petrol and diesel is good for the country.

Rewane, speaking in an interview on Channels TV, said the import tariff is designed to encourage local production of petroleum products.

According to the policy, it is aimed to discourage imports and retain jobs in Nigeria.

“Petrol import duty is good for the country. Why is it good? Because it encourages domestic production. Anytime you import, you are actually creating jobs for other countries rather than your own country. Basically, import protection is good,” he said.

The move means that Nigerians would have to pay more for fuel consumption when it is implemented.

Recently, data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority showed that 69 per cent of petrol consumed in Nigeria is imported, while 31 per cent is locally produced.

The policy places Dangote Refinery in an advantageous position in the country’s oil and gas sector.

However, Nigerians have kicked against the move, saying it would cause more hardship in the country.

This comes as an All Progressives Congress chieftain in Delta State, Ayiri Emami, on Thursday urged President Tinubu to withdraw the 15 per cent import duty tariff because it will bring more hardship for Nigerians.

Meanwhile, Petroleum marketers have warned that the pump price of Premium Motor Spirit, popularly called petrol, could exceed N1,000 per litre following the 15 per cent ad valorem import tariff on fuel imports.

The new policy, which takes effect after a 30-day transition period expected to end on 21 November 2025, is part of the government’s strategy to protect local refiners and reduce the influx of cheaper imported products that threaten domestic refining investments.

However, marketers say the move could backfire and push retail prices beyond the reach of average Nigerians.

Commenting in a telephone interview on Thursday, multiple depot operators with knowledge of the matter, who spoke on condition of anonymity, said the decision could further raise the price of petrol, which already sells for around N920 per litre, in many parts of the country.

“As it is, the price of fuel may go above N1,000 per litre. I don’t know why the government will be adding more to people’s suffering,” one of the depot operators said.

Another depot operator added, “Unfortunately, some of the importers are working in alignment with Dangote, which is why the last price increase was general; all players raised their prices at once. Let’s just wait and see what happens next.”

Another operator added that without a clear framework to stabilise market forces and ensure fair competition, the new import duty could trigger another round of price hikes and worsen the hardship faced by consumers.

The National Vice-President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, also agreed that the tariff had its implications, saying it might lead to a price surge.

Fashola said the policy had both positive and negative effects, adding that it could discourage importation while promoting local refining.

The IPMAN leader opined that some marketers moght perceive it as an opportunity to monopolise the sector in favour of Dangote and a few other refineries.

“The 15 per cent tariff on imported fuel has its own implications. Maybe the price will go up, and equally, it will discourage importers from bringing in fuel if it becomes too costly.

“But it has both negative and positive effects on the sector. I see that the government is trying to protect local refiners, but it will have its own implications because people will see it as a way of monopolising the industry for certain people. At the same time, the government aims to protect the local refiners.”

However, Fashola stressed that the failure of the local refiners to supply enough fuel into the domestic market could trigger a fuel crisis.

“If the local refiners fail, it will have its own implications. It may lead to scarcity, and people will not have an alternative. So, it has both positive and negative effects. That’s the way I see it,” he added.