ECCIMA hails ‘Nigeria First’ policy, supports 15 percent oil import tax for job creation, economic growth

*The Enugu Chamber of Commerce, Industry, Mines and Agriculture commends the Federal Government of Nigeria for its recent policy decision to impose a 15 percent tax on imported Premium Motor Spirit, also known as petrol, as well as diesel

Alexander Davis | ConsumerConnect

The Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA) has commended the Federal Government of Nigeria’s decision to impose a 15 percent tax on imported petrol and diesel.

The Association described the policy decision as a bold and strategic move that would stimulate economic growth, encourage local production, and create employment opportunities for Nigeria’s growing youth population.

It is noted that ECCIMA has long maintained that the Naira cannot appreciate while over 80 percent of Nigeria’s needs remain import dependent.

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Excessive importation of finished goods continues to weaken the currency, especially when these goods can be produced locally, ECCIMA stated.

The Association explained that by imposing higher tariffs on products that could be manufactured within Nigeria, the government is taking a critical step towards protecting and revitalising local industries.

It noted the importation of refined petroleum products dated back to the 1990s—a period that marked the beginning of Nigeria’s gradual economic decline.

According to ECCIMA, since then, Nigeria’s Naira has consistently been depreciated.

ECCIMA, however, said the inability of the Nigerian National Petroleum Company (NNPC) Limited to revive the country’s three government-owned refineries, coupled with indiscriminate issuance of fuel import licences, had deepened these economic challenges.

Globally, leading economies such as the United States and China have adopted strict policies to discourage the importation of goods that can be produced locally. These nations prioritise domestic production to meet internal demand and drive exports, thereby strengthening their balance of trade.

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Nigeria must embrace similar strategies to achieve sustainable economic transformation.

ECCIMA also commends Alhaji Aliko Dangote, Chairman of the Dangote Group, for his visionary investment in the Dangote Petroleum Refinery—a project that is already meeting domestic needs and earning foreign exchange for Nigeria.

The planned expansion of the refinery’s capacity from 650,000 barrels per day to 1.4 million barrels per day further reinforces confidence that Nigeria can meet its local demand and reduce reliance on imports.

To complement this policy, ECCIMA urged the Federal Government to issue more licences to indigenous companies for refinery development.

According to the stakeholders, oil remains Nigeria’s primary source of foreign earnings, and stakeholders with the capacity to transform the country from a net exporter of crude oil to a net exporter of refined products should receive full government support.

Eliminating bureaucratic bottlenecks in licensing will attract more investors, foster competition, and ensure adequate supply for both domestic and export markets.

Nigeria has the potential to become a global leader in refined petroleum exports if this policy is effectively implemented. ECCIMA fully supports private sector initiatives aimed at reviving local refining and endorses any government policy that protects and promotes such efforts.

ECCIMA added: “We call on all stakeholders to rally behind this policy and encourage greater indigenous participation in the refining sector for the sustainable growth of our national economy.”