Northern industrialists have expressed deep concerns over the reversal of the planned 15percent import duty on petroleum products.
Chairman of the Nigerian Association of Small-Scale Industrialists (NASSI), Nasarawa State Chapter, Manasseh Sambo, told newsmen that the reversal will have consequences on domestic refining and the Nigerian economy.
He said: “The Nigerian Association of Small-Scale Industrialists (NASSI), Nasarawa State Chapter, notes with deep concern the recent decision by the Federal Government to reverse the earlier announced 15% import duty on refined petroleum products.
“While we fully recognise government’s responsibility to adjust fiscal measures in response to national socio-economic conditions, it is imperative to underscore the broader consequences of this reversal on domestic refining, industrial competitiveness, and the economic prospects of the ordinary Nigerian and the small-scale business ecosystem.”
The chairman said the 15% import duty was not an arbitrary fiscal instrument.
“It was a deliberate strategic measure designed to support Nigeria’s transition from a heavily import-dependent fuel economy to one anchored on domestic refining capacity”, he said.
According to the Association, to reverse such a policy at this critical stage is to risk undermining the industrial confidence required by investors who have committed billions of dollars into refining and petrochemical production.
He added that the reversal weakens Nigeria’s ability to strategically nurture and scale up domestic industries capable of reducing import bill, strengthening the naira, and stimulating value-chain expansion in manufacturing.
He advised the Federal Government to reaffirm its long-term strategic policy on domestic refining, strengthen incentives for local refiners, implement a phased or hybrid tariff system that protects consumers in the short term while securing Nigeria’s long-term industrial interests and develop targeted energy-support mechanisms for small-scale industries.
Speaking in the same vein, President of the Kano State Chamber of Commerce, Industry, Mines and Agriculture (KACCIMA) Amb. Hassan Usman Darma said the policy aims to protect domestic refining capacity, cautioning government over policy inconsistency.
Amb Darma said frequent changes in policy create uncertainty, deterring long-term investments.
He however urged the Federal Government to balance local production support with consumer concern.
A civil society group (CSO), Partners for National Economic Progress (PANEP), had faulted the Federal Government, calling the decision a setback to Nigeria’s drive for local refining.
In a statement signed by its Co-Convener, Comrade Olamide Odumosu, the group maintained that the initial tariff was a “wise and courageous” policy consistent with the Petroleum Industry Act (PIA), which aims to liberate the downstream sector from decades of dependence on fuel imports.
PANEP dismissed assertions that Nigeria lacks the refining capacity to meet domestic demand, insisting that the Dangote Refinery can not only adequately supply the nation but also maintain product reserves capable of sustaining the country for up to 90 days in the event of any disruptions.
It would be recalled that the Chairman of the Manufacturers Association of Nigeria (MAN), Kano-Jigawa Branch, Muhammad Bello Isyaku Umar had lauded the introduction of the new import duty on petrol and diesel, describing it as a policy capable of placing the nation’s economy on a stronger and more sustainable footing.
