CPPE Praises 15% Tariff on Imported Fuel as Boost for Nigerian Refining
The Centre for the Promotion of Private Enterprise (CPPE) has applauded the recent 15% tariff on imported refined petroleum products, viewing it as a timely policy intervention that could bolster Nigeria's domestic refining capacity.
CPPE argues that unrestrained trade liberalization cannot foster industrialization. It advocates for a balanced protectionist approach to nurture emerging industries and build competitiveness over time. To ensure long-term gains, CPPE suggests complementary measures such as low-cost financing, reliable energy supply, infrastructure investment, and streamlined regulations.
The organization points out that successful industrial nations like China, South Korea, and Malaysia heavily relied on protectionist measures during their formative stages. CPPE supports the 15% import duty on refined petroleum products, stating it encourages investment in local refining, conserves foreign exchange, and stimulates job creation. It describes Nigeria's persistent importation of refined petroleum products as a major economic weakness, draining foreign reserves and causing fiscal instability.
CPPE urges the federal government to maintain the 15% import duty on refined petroleum products and extend similar industrial support to sectors like steel, petrochemicals, and agro-processing. The organization warns that Nigeria's continued dependence on imports weakens its productive base, undermines competitiveness, and leaves the economy vulnerable to external shocks.
