The Centre for the Promotion of Private Enterprise has cautioned the Federal Government against suspending the 15 percent petrol import duty, arguing that the policy shift could undermine the operations of Dangote Refinery and other domestic refiners.
In a statement issued in Lagos, CPPE said the duty plays a critical role in creating a level field for local producers who face higher operational and financing costs compared to foreign refiners. The group warned that removing the duty could make imported petrol significantly cheaper, putting pressure on emerging domestic supply and discouraging further investment in refining capacity.
The organisation explained that Nigeria is at a sensitive point in its energy transition, with the government seeking to reduce reliance on imported fuel. CPPE noted that discouraging local refining at this stage would weaken the country’s long term economic resilience and expose it to global price shocks.
Analysts have echoed similar concerns, stating that policy inconsistency has long hurt Nigeria’s downstream sector. They argue that maintaining the duty supports a predictable business environment and safeguards the viability of large scale projects like Dangote Refinery, which is expected to play a major role in stabilising domestic supply.
CPPE urged policymakers to adopt measures that strengthen competitiveness, support technology upgrades, and ensure refinery operations remain profitable. It added that strategic protection for domestic players is necessary until Nigeria attains full refining capacity.
The government has not yet issued an official statement on whether the duty will be suspended, but industry stakeholders are pushing for clarity to avoid market uncertainty.
For now, the debate highlights the challenge of balancing cheaper imports with the long term goal of achieving energy independence through robust local refining.