Petroleum 15 per cent import duty: Suspension may cause job losses, erode investor confidence, CPPE warns

The Centre for the Promotion of Private Enterprise (CPPE) has warned that the recent decision of the Federal Government to suspend the 15 per cent import duty on petroleum products may cause job losses and erode investors’ confidence in the nation’s economy.

The Centre gave this warning in a statement issued by its Chief Executive, Dr. Muda Yusuf, on Sunday.

Arguing that domestic refining stimulates broad value-chain activities in petrochemicals, plastics, logistics and transport, engineering services, fabrication and construction, the Centre added that unrestrained importation, which the suspension of the policy might cause, would effectively export those jobs and opportunities to foreign economies.

It noted that frequent policy reversals, such as the recent suspension of the petroleum import duty, would continue to weaken investor sentiment across refining and downstream operations, domestic manufacturing, financial institutions and global investment partners.

“Undermining confidence at this stage threatens the viability of transformational national assets such as the Dangote Refinery and modular refineries,” it argued.

On the justification for the policy, the Centre stated it had become imperative since fair competition requires comparable operating conditions.

“Nigerian refiners face infrastructure deficits, higher finance costs, insecure operating environments, elevated logistics costs and demurrage, and weak transport and storage systems. Importers face none of these disadvantages. Without protective measures, domestic refiners operate at a structural disadvantage,” it said.

CPPE added that since every major country protects its economy, and with Nigeria already maintaining an Import Adjustment Tax List for strategic sectors such as agro allied, cement, sugar, steel, pharmaceuticals and automobiles, extending similar protection to domestic refining would both be logical and necessary.

It stated that, while domestic refineries are expected to meet national demand within a short horizon, temporary supply gaps should be addressed not by dismantling protective measures but through guided, quota-based importation to supplement domestic output.