The Manufacturers Association of Nigeria (MAN) has called on the Federal Government to channel proceeds from the newly approved 15 per cent import tariff on petrol and diesel into strengthening the nation’s energy infrastructure, improving refinery operations, and providing power support schemes for industries.
The association described the tariff as a “patriotic and strategic decision” that aligns with its long-standing advocacy for promoting Made-in-Nigeria products and advancing the Nigeria First industrial agenda.
In a statement released on Wednesday, Segun Ajayi-Kadir, Director-General of MAN, stated that the tariff imposition was a “sure step toward strengthening local value addition, domestic refining capacity, conserving foreign exchange, and advancing Nigeria’s long-term industrialisation objectives.” He said,
He also added that the “15 per cent tariff is a deliberately designed policy instrument intended to protect and encourage domestic producers, curb dumping, and create a stable environment for local refiners to thrive.”
Segun Ajayi-Kadir also noted that the policy demonstrates that the government is concerned about the requirements of local manufacturers and committed to supporting indigenous businesses, the Punch reports.
His sentiment was geared towards the fact that the move is intended to speed up the readiness of domestic refineries, ensure a more consistent energy supply for industries, and minimize reliance on foreign fuels.
However, Ajayi-Kadir asked the government to keep fuel prices transparent. He stressed the importance of important regulatory authorities, such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC), in monitoring the market and preventing exorbitant markups and anti-competitive behaviors.
“We call for transparent, efficient, and well-coordinated implementation to ensure that its benefits reach both industry and consumers, safeguard competitiveness, and prevent unintended cost burdens,” he stated.
How Nigeria’s new fuel tariff could aid manufacturing
Nigeria’s decision to impose a 15 per cent import tariff on petrol and diesel has sparked widespread debate, but industry experts believe that, if well managed, the move could prove to be a turning point for the nation’s manufacturing sector.
One of the biggest challenges facing Nigerian manufacturers is unreliable and expensive energy.
With many firms relying heavily on diesel-powered generators due to inconsistent grid supply, energy costs often consume a significant portion of production expenses.
If the 15 per cent import tariff is effectively reinvested into strengthening domestic refining and expanding energy infrastructure, industries could benefit from more stable and affordable fuel sources.
This would not only lower operational costs but also improve production consistency, two key ingredients for competitiveness in the global market.
The tariff is also designed to make imported fuel less attractive while encouraging investment in local refining.
As refineries like the Dangote Refinery and smaller modular refineries ramp up operations, the policy could create a more self-sufficient downstream sector.
During the construction phase, the refinery project reportedly employed around 29,000 Nigerians and 11,000 foreign nationals (totalling about 40,000 personnel) under a target of 57,000 workers.
On its “About Us” page, the refinery notes that during project execution, “over 30,000 are currently working at the refinery project site, through various contractors,” and anticipates that when fully operational, it “is going to generate 100,000 direct and indirect jobs for Nigerian youths.”
While the 15 per cent import tariff on petrol and diesel may initially appear as a cost-raising measure, its success depends entirely on how the proceeds are managed
