The Nigeria Employers' Consultative Association (NECA) has commended the Nigerian government's recent introduction of a 15 per cent import tariff on petrol and diesel, saying that it will strengthen the naira and support the industrialisation agenda in the country. NECA described the policy as a necessary step to stimulate local investment, strengthen the economy, and …
Fuel Import Tax will Strengthen Naira, Support Industrialisation — NECA
The Nigeria Employers’ Consultative Association (NECA) has commended the Nigerian government’s recent introduction of a 15 per cent import tariff on petrol and diesel, saying that it will strengthen the naira and support the industrialisation agenda in the country.
NECA described the policy as a necessary step to stimulate local investment, strengthen the economy, and reduce the country’s long-standing reliance on imports of refined fuel.
In a statement on Sunday, NECA Director-General Adewale-Smatt Oyerinde said the policy would discourage fuel imports, helping to conserve foreign exchange (FOREX).
He said that the move would attract and protect investment in the local oil and gas sector.
READ ALSO: Dangote Refinery Backs 15% Fuel Import Tax, Pushes Against Substandard Products
Oyerinde said it is quite absurd that a country like Nigeria, which is blessed with abundant crude oil resources, relies heavily on the importation of petroleum products.
He argued that the moribund state of Nigeria’s four refineries could be partly blamed on the continued importation of petroleum products that should have been produced domestically.
“It is absurd for a country blessed with crude oil to spend so many years importing petrol and diesel,” he said, adding that the implementation of the tariff on imported fuel “is not only timely but essential.”
READ ALSO: Fuel Import Tax: Experts Raise Concerns about Higher Costs, Burden on Consumers
“If implemented effectively, this policy will accelerate Nigeria’s journey toward energy sufficiency and economic growth.
“It will assure local manufacturers and investors in the oil and gas industry that government policies are designed to protect and sustain their investments,” Oyerinde added.
While strongly supporting the policy, NECA cautioned that its success depends on careful implementation by the government to avoid negative outcomes.
“A policy meant to promote local refining and ensure regular supplies at the lowest cost should not become a hardship for Nigerians,” he warned.
Oyerinde called for effective management of the Naira-for-crude deal to ensure a steady supply of crude to local refiners.
He urged the government to continue pursuing policies that encourage local production in all sectors of the economy.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
Subscribe to Our Newsletter
Keep in touch with our news & offers
