Introduction to New Import Duty
Industrialists from Northern Nigeria have welcomed the Federal Government’s decision to impose a 15 per cent import duty on petroleum products. They said that the measure would stimulate local production, enhancing value addition within the oil and gas sector, and creating a more competitive environment for Nigerian manufacturers.
Reaction from Manufacturers Association of Nigeria
Muhammad Madugu, Chairman of the Sharada-Challawa branch of the Manufacturers Association of Nigeria (MAN) in Kano, disclosed this during the Association’s visit to the Dangote Group’s regional office in Abuja. He said local manufacturers would continue to align with progressive government policies designed to stimulate industrial development, promote local content, and position Nigerian companies to compete effectively on the global stage.
Benefits of the New Policy
Madugu explained that his members adopt a balanced approach in assessing government policies, weighing their potential benefits and challenges both to member industries and to the nation’s economic development. According to him, there are numerous business opportunities arising from the various derivatives of crude oil refining by the company, adding that his members are eager to leverage the vast potential created by the Dangote Refinery.
Derivatives of Crude Oil Refining
Madugu said some of the key derivatives obtained from crude oil refining include petrol, diesel, kerosene, jet fuel, and liquefied petroleum gas (LPG). Others, he said are naphtha, bitumen, lubricating oils, and fuel oil, as well as important petrochemical feedstocks such as linear alkylbenzene (LAB), ethylene, propylene, and butadiene, all of which serve as raw materials for the production of plastics, detergents, synthetic fibres, and other industrial goods.
Courtesy Visit to Dangote Group
The courtesy visit followed the 2025 MAN Product Exhibition in Kano, an annual event sponsored by Dangote Industries Limited. He lauded Dangote Group President, Aliko Dangote, for his rare faith and resilience in advancing the Nigerian project. The MAN team also presented Awards of Excellence to Dangote and to the Special Adviser on Strategic Relations and Projects to the Dangote Group President, Mrs Fatima Wali-Abdurrahman.
Reaction from Dangote Group
In her reaction, Wali-Abdurrahman expressed the company’s appreciation, adding that Mr Dangote is passionate about supporting the government in growing and developing the Nigerian economy. She said the company remains committed to promoting locally made products and driving job creation across the country. According to her: “We believe that strong linkages between the refinery and local manufacturers will stimulate the growth of ancillary industries, create new value chains, and enhance our collective capacity to meet both domestic and export demands.”
Expansion Plans and Job Creation
Mr Dangote recently disclosed plans to expand the refinery’s capacity to 1.4 million barrels per day (bpd), which is projected to generate approximately 65,000 jobs for Nigerians. Accompanying Madugu on the visit to the Dangote Group’s regional office were the Vice Chairman (Bompai), Mr Auwal Muhammad; the Executive Secretary, Mr Ibrahim Garba; and Mr Sani Sagagi, an official of the Association.
Reaction from Other Stakeholders
In a similar reaction, Chairman of the Manufacturers Association of Nigeria (MAN), Kano-Jigawa Branch, Muhammad Umar, lauded the introduction of the new import duty on petrol and diesel, describing it as a policy capable of placing the nation’s economy on a stronger and more sustainable footing. He said:”It will reduce the country’s volume of importation and high demand for Foreign Exchange, and this will improve the value of our currency.”
Government’s Perspective
President Bola Tinubu had approved a 15 per cent import tariff on petrol and diesel, describing the policy as a strategic step to stimulate local refining and strengthen Nigeria’s energy independence. According to a statement by the Special Adviser to the President on Media and Public Communications, Sunday Dare, on his official X handle, the new policy was “a bridge, not a burden”, aimed at transforming Nigeria’s petroleum landscape and securing long-term economic stability.
Conclusion
The introduction of the new import duty on petroleum products is a welcome development for industrialists and manufacturers in Nigeria. The policy is expected to stimulate local production, enhance value addition, and create a more competitive environment for Nigerian manufacturers. With the Dangote Refinery already meeting Nigeria’s fuel demand, the country is poised to reduce its dependence on imports and improve its energy security.
FAQs
- What is the new import duty on petroleum products in Nigeria?
The new import duty on petroleum products in Nigeria is 15 per cent. - What is the expected impact of the new policy on the Nigerian economy?
The new policy is expected to stimulate local production, enhance value addition, and create a more competitive environment for Nigerian manufacturers. - What is the current capacity of the Dangote Refinery?
The current capacity of the Dangote Refinery is 650,000 barrels per day. - What is the expected outcome of the expansion plans of the Dangote Refinery?
The expected outcome of the expansion plans of the Dangote Refinery is the generation of approximately 65,000 jobs for Nigerians. - What is the reaction of the Manufacturers Association of Nigeria to the new import duty?
The Manufacturers Association of Nigeria has welcomed the new import duty, describing it as a policy capable of placing the nation’s economy on a stronger and more sustainable footing.
