The Centre for the Promotion of Private Enterprise (CPPE) has strongly cautioned the Federal Government that last week’s suspension of the planned 15 per cent import duty on petrol and diesel poses a “profound threat” to domestic refining investments, job creation, foreign exchange conservation, and long-term energy security.
The duty, originally contained in the new tax reform bills and scheduled to take effect on 1 January 2026, was suspended following intense pressure from importers and oil marketers who argued it would raise pump prices and create a monopoly for local refiners.
In a policy brief titled Safeguarding Nigeria’s Domestic Refining Capacity and Energy Security, CPPE CEO Dr Muda Yusuf insisted the 15 per cent levy was never a revenue measure but a deliberate industrial protection tool designed to shield emerging private refineries led by the $20 billion Dangote Refinery and dozens of modular refineries from unfair competition with imported products.
“Multi-billion-dollar investments were made on the legitimate expectation of policy stability and a level playing field,” the brief stated.
“Suspending the duty abruptly undermines investor confidence and exposes local refiners to inequitable competition from importers who enjoy cheaper capital, stable electricity, efficient logistics, and zero security costs abroad.”
CPPE highlighted that Nigerian refiners face structural disadvantages including:
. High energy costs and total reliance on self-generated power.
. Inadequate infrastructure and logistics bottlenecks.
. Double-digit borrowing rates .
. Port inefficiencies and inland transportation challenges.
. Pervasive security risks.
“Without protective measures, achieving price parity with imported fuel is impossible,” the Centre stressed.
The think-tank warned that reversing course toward heavy import dependence will:
. Re-expose Nigeria to global price volatility and supply-chain disruptions.
. Intensify pressure on scarce foreign exchange (petrol imports remain the largest FX drain).
. Jeopardise thousands of direct and indirect jobs in the refining value chain.
. Undermine backward integration and industrialisation objectives.
. Risk a return to the fiscally ruinous subsidy era.
While acknowledging public sensitivity to fuel prices, CPPE urged President Bola Tinubu to immediately reinstate the 15 per cent duty, provide targeted production incentives and infrastructure support to local refiners, strengthen policy predictability, and impose strict monitoring of import volumes.
“Nigeria cannot afford short-term populist measures that mortgage long-term national interests,” Dr Yusuf declared.
“Protecting the Dangote Refinery and emerging modular refineries is not about favouring one company, it is about securing energy independence, conserving forex, creating jobs, and asserting economic sovereignty.”
The Centre concluded that safeguarding domestic refining capacity is now “an urgent national imperative.”
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