- Reinstating the 15% import duty protects domestic refineries and supports industrialisation.
- Local refining reduces long-term costs and mitigates foreign exchange and supply risks.
The Centre for the Promotion of Private Enterprise (CPPE) has warned that the suspension of the 15 per cent import duty on petrol and diesel poses a threat to Nigeria’s energy security. The move, according to the organisation, discourages investment and endangers significant assets such as the Dangote Refinery and modular refineries.
Dr Muda Yusuf, CPPE Chief Executive Officer, issued the warning in a policy brief released on Sunday. He stressed that the suspension “is a short-term measure that jeopardises long-term national interests.” The government initially introduced the duty on October 21, 2025, to protect emerging private refineries, encourage backward integration, and reduce dependence on fuel imports.
The policy aimed to help domestic refiners compete despite high operating costs, infrastructure gaps, and expensive financing. It also sought to conserve foreign exchange and support local value addition. Most private sector groups, including the Manufacturers Association of Nigeria, welcomed the policy. However, some stakeholders feared it could drive up fuel prices.
The Federal Government suspended the duty to ease short-term fuel price pressures. Yusuf argued that this undermines a level playing field for domestic producers. He noted that investors committed billions of dollars based on policy stability, particularly at the Dangote Refinery and modular refineries. Removing the duty exposes local refiners to unfair competition from importers.
Yusuf further explained that domestic refineries face high energy costs, logistics challenges, security risks, and financing hurdles. He warned that lifting the duty increases Nigeria’s exposure to global price volatility, geopolitical disruptions, and supply insecurity. He added that petrol importation already strains foreign exchange reserves.
The CPPE emphasised that domestic refining drives petrochemical, plastics, logistics, engineering, and fabrication value chains. Frequent policy reversals, it said, weaken investor confidence and threaten transformational assets. Yusuf insisted that protecting domestic refineries aligns with practices in the US, EU, India, and China.