The Centre for the Promotion of Private Enterprise (CPPE) has expressed strong support for the Federal Government’s recent introduction of a 15 percent import duty on refined petroleum products, describing it as a strategic policy measure capable of driving investment in Nigeria’s domestic refining sector and stimulating broader industrial development.
In a policy brief released on Sunday, CPPE’s Director and Chief Executive Officer, Dr. Muda Yusuf, said the tariff represents a balanced and forward-looking intervention that could help rebuild Nigeria’s industrial base-if backed by complementary reforms and supportive infrastructure.
According to him, Nigeria’s path to sustainable industrialisation must be rooted in ‘strategic, time-bound protectionism,’ rather than unrestrained trade liberalization, noting that ‘No country has industrialised through indiscriminate exposure to imports’.
He said: ‘A 15 percent duty on refined petroleum products is modest, balanced, and necessary to restore Nigeria’s refining capacity and fiscal resilience.’
Dr. Yusuf explained that the policy is not about closing borders, but about creating the right conditions for local producers to thrive.
‘Protectionism, when pragmatic and disciplined, is about building domestic strength for global competitiveness. The goal is not to shut out the world, but to empower Nigeria to engage it from a position of strength,’ he noted.
The CPPE urged the government to complement tariff protection with industrial support measures such as access to low-cost financing, affordable energy supply, and improved logistics to guard against price escalation.
It also called for the expansion of backward integration incentives in sectors like petrochemicals, steel, agro-processing, and pharmaceuticals.
Dr. Yusuf emphasised the need for strong monitoring and evaluation frameworks to ensure that protectionist measures lead to greater productivity, innovation, and price moderation.
He also recommended that such protection be performance-based and time-bound, with a clear transition plan toward export competitiveness once domestic industries attain stability.
Drawing from successful examples in the cement, flour, and beverage industries, Yusuf argued that Nigeria should prioritise policies that encourage both indigenous and foreign investors to produce locally rather than rely on imports.
‘Producers should compete with fellow producers, not with importers,’ he said.
Acknowledging concerns over potential short-term price increases, he maintained that these would be transitional, adding that the long-term solution lies in enhancing domestic efficiency rather than liberalising imports.
Dr. Yusuf also pointed out that Nigerian manufacturers face steep structural disadvantages, including high energy costs, weak infrastructure, limited access to finance, and inefficient ports, compared to their counterparts in advanced economies that benefit from subsidised energy and low-interest financing.
‘Without addressing these imbalances, subjecting Nigerian firms to open global competition is not fair competition but policy-induced disadvantage,’ he warned.
He urged the government to institutionalise a ‘balanced and growth-oriented protectionist framework’ that supports industrial resilience, promotes domestic investment, and positions Nigeria for global competitiveness.