The Centre for the Promotion of Private Enterprise (CPPE) has thrown its weight behind the Federal Government’s 15 per cent import duty on refined petroleum products, describing the move as a strategic step toward reviving Nigeria’s industrial base and strengthening economic resilience.
In a statement, the Chief Executive Officer of CPPE, Dr. Muda Yusuf, said the policy aligns with the principle of strategic protectionism—a deliberate approach to safeguard domestic industries, enhance competitiveness, and promote national self-sufficiency.
According to Yusuf, the country’s heavy reliance on imported petroleum products for over two decades has had dire consequences, including sustained pressure on foreign exchange reserves, fiscal instability, and the collapse of local refining capacity.
“The 15 per cent import duty on refined petroleum products—petrol and diesel—is therefore a welcome and corrective measure,” Yusuf stated. “This modest protection will provide policy support for domestic refineries such as Dangote Refinery, NNPCL refineries, and modular refineries to thrive, restore refining capacity, and reduce forex exposure.”
He argued that no country has achieved meaningful industrialisation through unrestricted trade liberalisation, stressing that strategic protectionism is vital to achieving long-term economic growth and competitiveness.
“When complemented with broader industrial support measures, this policy can catalyse industrial expansion, conserve foreign exchange, create jobs, and enhance economic resilience,” Yusuf added.
He further noted that Nigeria’s dependence on imports had weakened its productive base and exposed the economy to external shocks. Sectors that benefited from measured protection—such as cement, flour, and beverages—had recorded impressive growth and value addition.
Drawing from global examples, Yusuf pointed out that Asian economies like China, South Korea, India, and Malaysia achieved industrial transformation by initially shielding their industries, promoting local content, and developing domestic value chains before opening up to global competition.
“For Nigeria, this is not economic isolation but a self-strengthening strategy,” he explained. “It ensures our domestic economy develops sufficient capacity to compete effectively on the global stage.”
To maximise the gains of the policy, the CPPE boss urged the government to complement it with fiscal incentives, low-interest financing, stable energy supply, and improved infrastructure.
“As domestic industries expand, production costs will decline, leading to price stabilisation and greater consumer welfare,” Yusuf added.
