NECA Director General Wale Smatt Oyerinde backs the Federal Government’s 15% fuel import tariff, saying it will encourage local production and strengthen Nigeria’s economy.
The Nigeria Employers’ Consultative Association (NECA) has thrown its support behind the Federal Government’s proposed 15% tariff on imported fuel, describing the policy as a necessary step to revive Nigeria’s local refining capacity and reduce dependence on imports.
Speaking on a televised program, Sunrise Daily on Friday, NECA Director General Wale Oyerinde said the decision could help encourage investment in the downstream sector and protect local industries.
“We support the policy of a 15% tariff on imported petroleum products, not on locally produced ones,” Oyerinde said. “If this 15% tariff is the punishment we must bear collectively for our recklessness in allowing our refineries to collapse, then so be it.”
Oyerinde drew parallels with protectionist policies in advanced economies like the United States, arguing that Nigeria must take similar steps to strengthen its industrial base.
“Even developed nations like the U.S. are introducing protectionist policies to protect their local industries. We don’t have much excuse not to do the same,” he added.
The Federal Government recently directed the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to enforce the new tariff.
While critics fear the policy could raise the landing cost of fuel and push up prices at the pump, NECA insists it’s a short-term trade-off that will benefit the economy in the long run.
Oyerinde said the measure should also be extended to other sectors to boost domestic production and reduce foreign exchange demand.
“We’re looking beyond petrol and diesel. This kind of policy should also apply to manufacturing and the real sector,” he said. “If we can produce locally, why import? Let’s give businesses a one- or two-year moratorium to build capacity, but we must reduce the habit of importation.”
Economists say the move aligns with President Bola Tinubu’s industrialization agenda, but warn that effective implementation will depend on improving local refinery operations and ensuring a stable energy supply to support manufacturing.
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