Northern manufacturers back 15% fuel import duty

Manufacturers from Northern Nigeria have welcomed the Federal Government’s decision to impose a 15 percent import duty on petroleum products, noting that the move will stimulate local production, enhancing value addition within the oil and gas sector, and create a more competitive environment.

President Bola Tinubu had approved a 15 percent import tariff on petrol and diesel, describing the policy as a strategic step to stimulate local refining and strengthen Nigeria’s energy independence.

According to a statement by Sunday Dare, Special Adviser to the President on Media and Public Communications, on his official X handle, the new policy was a bridge, not a burden, aimed at transforming Nigeria’s petroleum landscape and securing long-term economic stability.

Muhammad Nura Madugu, chairman, Sharada-Challawa branch of the Manufacturers Association of Nigeria (MAN), Kano, speaking during visit to the Dangote Group’s regional office in Abuja, maintained that the local manufacturers are in support of the government policies.

For him, the policy is designed to stimulate industrial development, promote local content, and position Nigerian companies to compete effectively on the global stage.

Madugu explained that his members adopt a balanced approach in assessing government policies, weighing their potential benefits and challenges both to member industries and to the nation’s economic development.

He said, “There are numerous business opportunities arising from the various derivatives of crude oil refining by the company,” adding that his members are eager to leverage the vast potential created by the Dangote Refinery.

“Some of the key derivatives obtained from crude oil refining include petrol, diesel, kerosene, jet fuel, and liquefied petroleum gas (LPG). Others are naphtha, bitumen, lubricating oils, and fuel oil, as well as important petrochemical feedstocks such as linear alkylbenzene (LAB), ethylene, propylene, and butadiene, all of which serve as raw materials to produce plastics, detergents, synthetic fibres, and other industrial goods.”

Also speaking, Muhammad Bello Isyaku Umar, chairman of the Manufacturers Association of Nigeria (MAN), Kano-Jigawa Branch, 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.

He explained that the move will reduce the country’s volume of importation and high demand for foreign exchange, which will in turn improve the value of naira.

Read also: Dangote Refinery vows uninterrupted supply, says 15% fuel import duty for market stability

Umar said, “The new policy will encourage more investment in the oil sector, especially in refining petroleum. It will also increase government revenue. If there is not enough local supply, the policy can lead to higher fuel prices, increase in transportation and goods.”

In her remarks, Fatima Wali-Abdurrahman, Advisor, Special Project & Strategic Relations at Dangote Industries Limited, said the company remains committed to promoting locally made products and driving job creation across the country.

She explained that strong linkages between the refinery and local manufacturers will stimulate the growth of ancillary industries, create new value chains, and enhance our collective capacity to meet both domestic and export demands.