• MAN, NECA back immediate implementation; LCCI, ASBON urge caution

The Federal Government’s decision to impose a 15 percent tax on imported petrol and diesel to protect local refineries has sparked divergent reactions among private sector operators. While all agree on potential long-term benefits, industry groups differ on short-term implications for the economy.

The Manufacturers Association of Nigeria (MAN) and the Nigeria Employers’ Consultative Association (NECA) support immediate implementation. Segun Ajayi-Kadir, Director-General of MAN, described the move as “a patriotic policy aligned with the ‘Nigeria First’ agenda,” emphasizing its role in promoting local value addition, conserving foreign exchange, and advancing industrialization.

Ajayi-Kadir stressed the importance of transparent and efficient implementation to ensure benefits reach both industry and consumers while preventing unintended cost burdens.

NECA’s Wale Oyerinde echoed the sentiment, noting that developed countries use similar protectionist measures to safeguard local industries. “If the 15% tariff is the ‘punishment’ for allowing our refineries to collapse, then so be it,” he said. Oyerinde also suggested extending import duties to other sectors where local production capacity exists.

On the other hand, the Lagos Chamber of Commerce and Industry (LCCI) and the Association of Small Business Owners of Nigeria (ASBON) advocate caution. Dr. Chinyere Almona, LCCI Director-General, warned that premature implementation could worsen supply shortages, increase pump prices, and fuel inflation, particularly affecting SMEs and trading firms.

Dr. Femi Egbesola, ASBON President, added that higher fuel costs could raise operating expenses and reduce profit margins for small businesses. He recommended a gradual rollout of the tax alongside measures to ensure local refineries operate efficiently and support mechanisms for small enterprises.

While the 15% import tax is widely seen as a long-term strategy to protect local refineries, conserve foreign exchange, and create jobs, private sector operators remain split on how quickly it should be enforced, reflecting concerns over short-term cost pressures and domestic refining capacity.