(DDM) – The Federal Government’s approval of a 15 per cent import duty on petrol and diesel has ignited discussions among industry stakeholders and investors.
Diaspora Digital Media (DDM) gathered that Mr. Mike Osatuyi, former National Operations Controller of the Independent Petroleum Marketers Association of Nigeria (IPMAN), praised the move as a bold step to protect domestic refineries.
Osatuyi argued that the levy would encourage local refining of petroleum products and reduce Nigeria’s over-reliance on imported fuels.
He stated, “This policy is a clear signal to investors that the government is committed to strengthening local refining capacity.”
Osatuyi emphasized that the duty would help stabilize fuel supply in the lon term while boosting the profitability of Nigerian refineries.
The former IPMAN official said the 15 per cent duty would create a level playing field between imported fuels and products from local refineries.
He further explained that investors, both local and foreign, are likely to view this policy as an incentive to inject capital into Nigeria’s refining sector.
Osatuyi warned, however, that the implementation must be consistent and transparent to avoid loopholes that could undermine local production.
He added that smuggling and illegal importation could threaten the intended impact if enforcement is weak.
Background
Nigeria currently relies heavily on imported petrol and diesel despite having several refineries, many of which operate below capacity due to infrastructure deficits and maintenance challenges.
Over the past decade, successive governments have struggled to make local refineries profitable, leaving the country vulnerable to global oil price fluctuations.
The 15 per cent import duty represents a strategic shift in energy policy, aiming to encourage domestic refining while discouraging excessive importation of petroleum products.
Economists note that while the policy could raise pump prices slightly in the short term, it may stabilize fuel availability and prices over time.
Investors are closely watching government measures to revamp local refineries, as reliable operations could attract private partnerships and foreign investment.
Critics argue that without substantial investment in refinery infrastructure and improved governance, import duties alone may not solve the supply problem.
They caution that higher fuel costs could trigger inflationary pressures, affecting transportation, goods pricing, and household budgets.
Implications
If successfully implemented, the 15 per cent duty could reduce Nigeria’s fuel import bill and boost the domestic economy.
Local refineries may become more competitive, offering job creation, capacity building, and economic growth in oil-producing regions.
Osatuyi’s endorsement signals confidence among petroleum marketers and highlights the potential benefits for industry stakeholders.
The policy also demonstrates President Bola Tinubu’s administration’s willingness to take decisive measures to reform Nigeria’s petroleum sector.
Looking Forward
Observers will monitor the impact of the import duty on local refining efficiency, fuel availability, and consumer pricing.
Stakeholders expect government agencies to strengthen enforcement against illegal imports and ensure the benefits reach domestic refineries as intended.
Global investors will be watching closely to assess whether Nigeria can provide a stable and profitable environment for downstream petroleum investment.
The success or failure of this policy could influence future reforms and shape Nigeria’s energy landscape for years to come.