Tinubu’s 15% fuel import duty will boost local refineries, create jobs — CORAN

Momoh Oyarekhua, Chairman of the Crude Oil Refinery Owners Association of Nigeria (CORAN), has endorsed President Bola Tinubu’s approval of a 15 percent import duty on petrol and diesel, describing it as a strategic policy that will strengthen local refining, ease foreign exchange pressure, and create employment opportunities.

Speaking in a TV interview on Thursday, Oyarekhua commended the President for what he termed a “successive and strategic move” to reposition Nigeria’s downstream oil sector for long-term growth and stability.

“I have to thank Mr President for listening to us in the refining industry. These are progressive decisions aimed at making Nigeria’s refining industry work. First was the Naira-for-Crude policy, which we started advocating for since 2021 and which he recently approved. Now, with the duty on imported petroleum products, we see another major step in the right direction,” Oyarekhua said.

He explained that the newly introduced import duty would eliminate the “unhealthy competition” between local refinery operators and fuel importers, thereby creating a level playing field for domestic producers.

“We, the crude refinery owners, actually wanted an outright ban on the importation of petroleum products into Nigeria. At our first industry summit last year, we made it clear that Nigeria should become a net exporter of petroleum products,” he stated.

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According to Oyarekhua, five privately owned refineries are currently operational in the country, Dangote Refinery, OPAC Refinery, Waltersmith Refinery, Aradel Refinery, and Edo Refinery, all of which are actively producing and supplying petroleum products to the Nigerian market.

“We are not waiting for refineries to come on stream; they are already operating. If Nigerians patronise locally refined products, there will be no need for the 15 percent duty. The levy only applies to imported petroleum products,” he said.

He added that the growing contribution of local refineries was already helping to stabilise Nigeria’s foreign exchange market.

“Since the Dangote Refinery came on stream, we’ve seen the price of foreign exchange start to come down. This shows the impact of local production. About 45 to 50 percent of our forex used to go into fuel imports, but now we’re reducing that pressure,” he said.

Oyarekhua emphasised that the import duty would not only stabilise the economy but also attract investment, create jobs, and enhance energy security.

“There are several advantages, local job creation, increased investment, and energy security. If there’s a global crisis and we can’t import, producing locally ensures that Nigerians still have access to fuel. It’s only when we refine locally that we become self-sufficient and even able to export,” he said.