Popular economist and chief executive of Financial Derivatives Company Limited, Bismark Rewane, explained that President Bola Ahmed Tinubu’s approval of a 15 per cent import duty on petrol and diesel is good for the country.
Rewane, speaking in an interview on Channels TV, said the
import tariff is designed to encourage local production of petroleum products.
According to the policy, it is aimed to discourage imports
and retain jobs in Nigeria.
“Petrol import duty is good for the country. Why is it good?
Because it encourages domestic production. Anytime you import, you are actually
creating jobs for other countries rather than your own country. Basically,
import protection is good,” he said.
DAILY POST reports that Tinubu approved a 15 per cent import
duty on petrol and diesel.
The move means that Nigerians would have to pay more for
fuel consumption when it is implemented.
Recently, data from the Nigerian Midstream and Downstream
Petroleum Regulatory Authority showed that 69 per cent of petrol consumed in
Nigeria is imported, while 31 per cent is locally produced.
The policy places Dangote Refinery in an advantageous
position in the country’s oil and gas sector.
However, Nigerians have kicked against the move, saying it
would cause more hardship in the country.
This comes as an All Progressives Congress chieftain in
Delta State, Ayiri Emami, on Thursday urged President Tinubu to withdraw the 15
per cent import duty tariff because it will bring more hardship for Nigerians.
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This is not an economic policy but a political strategy to benefit Dangote who had earlier written to mr President on the need to ban all importation of oil & Gas into the country. The president does not however realise that he is helping to de-market nigeria. On pen & paper it is good but economically speaking it is very dangerous for an economy like ours.
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