Northern Manufacturers Applaud 15% Fuel Import Tariff as Boost for Local Refining and Economic Growth
Industrialists across Northern Nigeria have endorsed the Federal Government’s introduction of a 15% import duty on petroleum products, describing the move as a bold and strategic effort to strengthen local refining and encourage self-sufficiency in the oil sector. The policy, they said, would create a more competitive market, drive industrial growth, and support value addition across the country’s manufacturing landscape.
Speaking during a visit to the Dangote Group’s regional office in Abuja, Muhammad Nura Madugu, Chairman of the Sharada-Challawa branch of the Manufacturers Association of Nigeria (MAN), said local producers stand firmly behind policies that stimulate industrialization and economic diversification. He emphasized that manufacturers take a balanced view of government actions, assessing both opportunities and potential challenges to ensure sustainable growth for the nation’s economy.
Madugu highlighted that the Dangote Refinery opens vast opportunities for industries that depend on crude oil derivatives such as petrol, diesel, kerosene, and liquefied petroleum gas. He further listed petrochemical feedstocks like ethylene, propylene, and butadiene, which serve as raw materials for plastics, detergents, and synthetic fibers, adding that the refinery’s output could spur thousands of downstream enterprises. During the courtesy visit, MAN representatives also presented Awards of Excellence to Aliko Dangote and Mrs. Fatima Wali-Abdurrahman for their continued support of Nigerian industry.
Responding, Wali-Abdurrahman reiterated Dangote Group’s commitment to advancing national development and promoting locally made products. She explained that the company’s refinery expansion plan—aimed at raising capacity to 1.4 million barrels per day—could generate up to 65,000 jobs, strengthen local linkages, and boost exports. “Strong partnerships between refiners and manufacturers will expand value chains, enhance job creation, and position Nigeria as a regional energy hub,” she said.
In a similar reaction, Muhammad Bello Isyaku Umar, Chairman of MAN’s Kano-Jigawa branch, described the import duty as a policy that would reduce Nigeria’s reliance on fuel imports, lower foreign exchange pressure, and stabilize the naira. President Bola Tinubu approved the 15% tariff as a “bridge, not a burden,” according to his media aide Sunday Dare, emphasizing that it was designed to build long-term economic resilience and support domestic refining. The Dangote Refinery, which began operations in 2024, has assured that its 650,000 barrels-per-day capacity can meet Nigeria’s fuel demand, ensuring steady local supply and reducing dependence on imports.
source: punch