The Centre for the Promotion of Non-public Enterprise (CPPE) has warned that Nigeria’s continued importation of refined petroleum merchandise stays one of many nation’s greatest financial weaknesses, draining overseas reserves and worsening fiscal instability.
To deal with this, the organisation stated it helps the latest 15% import obligation imposed on refined petroleum merchandise, describing it as “a constructive and corrective measure” that would spur funding in native refining, preserve overseas change, and stimulate job creation.
In a brand new coverage temporary, CPPE CEO, Dr. Muda Yusuf, famous that Nigeria’s extended dependence on imports has weakened its productive base, undermined competitiveness, and left the financial system susceptible to exterior shocks.
The group argued that industrialization can’t be achieved via “indiscriminate commerce liberalization,” urging policymakers to undertake a calibrated protectionist framework that nurtures rising industries whereas constructing competitiveness over time.
“No nation has achieved industrialization via unrestrained publicity to imports,” CPPE said. “Strategic protectionism shouldn’t be financial isolation—it’s a pathway to international competitiveness via home power.”
Studying from Asian fashions
Drawing parallels with international examples, CPPE famous that industrial success tales similar to China, South Korea, and Malaysia relied closely on protectionist measures throughout their formative a long time. These international locations, the group defined, safeguarded their toddler industries, promoted native content material, and step by step opened as much as international competitors after constructing enough inner capability.
The report additionally cited america’ latest industrial insurance policies, together with subsidies and native manufacturing incentives, as proof that protectionism stays a reliable device for financial progress, even in superior economies.
CPPE careworn that Nigeria should take the same method, emphasizing that “producers ought to compete with fellow producers, not importers.” It added that each native and overseas buyers must be inspired to fabricate inside the nation relatively than depend on imports.
Oil and fuel: A case for native refining
The group described the continued importation of refined petroleum merchandise as one in every of Nigeria’s most damaging financial weaknesses, leading to a persistent drain on overseas reserves and financial instability.
It welcomed the 15% tariff as a well timed coverage intervention that would assist restore home refining capability.
“This modest safety will allow refineries similar to Dangote Refinery, NNPCL refineries, and modular operators to thrive,” CPPE famous. “It’s a balanced and obligatory step towards power self-sufficiency and financial resilience.”
The temporary in contrast the oil sector with different industries that benefited from structured safety, together with flour milling, agro-processing, and prescribed drugs—all of which recorded progress, backward integration, and native worth addition following tariff changes.
Balancing safety with competitiveness
CPPE emphasised that exposing native producers to international competitors with out addressing structural challenges, similar to excessive power prices, poor infrastructure, and restricted entry to finance, creates what it referred to as “policy-induced drawback.”
To make sure that protectionist insurance policies yield long-term beneficial properties, the group advisable complementary measures, together with low-cost financing, dependable power provide, infrastructure funding, and streamlined laws.
“Safety have to be strategic, time-bound, and performance-based,” the CPPE suggested. “As soon as home industries obtain stability, Nigeria ought to transition to export competitiveness.”
The middle additionally referred to as for enhanced monitoring and analysis mechanisms to make sure that safety encourages innovation, productiveness, and worth moderation relatively than rent-seeking or inefficiency.
Towards a self-reliant industrial future
In conclusion, CPPE urged the federal authorities to maintain the 15% import obligation on refined petroleum whereas increasing related industrial help to sectors like metal, petrochemicals, and agro-processing.
It maintained that disciplined protectionism—anchored on clear efficiency targets—can rework Nigeria’s industrial panorama and strengthen financial sovereignty.
“The objective is to not shut out the world,” the coverage temporary concluded, “however to empower Nigeria to have interaction it from a place of power.”
What it’s best to know
On Friday, the presidency defined that the just lately launched 15% import obligation on petrol and diesel was designed to make these imported merchandise much less aggressive and encourage native refining.
- It said that the coverage may even increase home capability and be sure that Nigeria’s oil wealth interprets straight into nationwide prosperity.
- Particular Adviser to the President on Media and Public Communication, Sunday Dare, said that this may reverse the disturbing development of Nigeria’s heavy reliance on imported petroleum merchandise regardless of being a number one crude oil producer and preserve overseas change.
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