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Economy

Marketers, stakeholders, warn against 15% petrol tax suspension

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• Reversal will trigger rise in forex, says Dr. Yusuf
• Policy is fiscal and market-stabilising instrument, says Prof Iledare

Experts and other stakeholders yesterday warned the country of jeopardisng long term national interests for short term measures. The experts, including economists, oil marketers, chambers of commerce and industry leaders, and other stakeholders, were reacting to the suspension of the of the implementation of the 15 per cent ad valorem import duty on imported Premium Motor Spirit and Diesel by the federal government.
Last week, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in a statement posted on its X handle had informed the public of government’s suspension of the implementation of the tax.
“It should also be noted that the implementation of the 15 per cent ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view,” the Director, Public Affairs Department, NMDPRA, George Ene-Ita, said in the post.
“Nigeria must avoid short-term measures that jeopardise long-term national interests. The suspension of the 15 per cent import duty on petroleum products puts at risk energy security; industrialization; foreign exchange stability; job creation; backward integration and national economic sovereignty.
“Therefore, protecting domestic refining capacity is an urgent national imperative. Reinstating protective measures, supporting local refiners, ensuring policy predictability and regulating import volumes are essential steps toward securing Nigeria’s industrial future,” the Chief Executive Officer, Center for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, in a statement made available to TheTrustNews.com, yesterday.
For professor of petroleum economics, Prof. Wumi Iledare, the 15 per cent import duty should have been viewed as a fiscal and market-stabilising instrument, not a political gesture.
While some stakeholders see the development as a step in the right direction, yet, others argued that it is a disservice to local refinery, investment in the sector and by extension, a negative for the country’s overall economy.
For the Independent Petroleum Marketers Association of Nigeria (IPMAN), the suspension of the tax will affect sector and economy in both the short and long term.
“Well, if we view the suspension for the immediate gain, then we can say it is a good development; but for the future, it is not a good development. The reason is that provided that there is no tax or charges on the imports, our local refineries will not be patronised because their product will be a little bit costlier than imported products,” IPMAN President, Abubakar Maigandi, told TheTrustNews.com in a telephone chat at the weekend.
Yet another oil marketer who pleaded anonymity, agreed that government should go ahead with the implementation of the tax if only for the benefits it offers. These benefits our source listed to include reduced pressure on foreign exchange considering that importation of petroleum products is dollar denominated.
“The truth and reality is that government should implement that 15 per cent tax on petroleum products importation because it will help our economy. The reason why you see Naira now a little bit stable compared to before, is because of the reduction of purchasing outside. And if we want to encourage the Nigerian company, actually we have to, the government has to do that; they have to put that tax.
“This is a reality, but you know people don’t want to hear it, they put politics into it and is not good for our economy. The 15 per cent tax on fuel import will help the indigenous companies or refineries- all these refineries just coming up, people doing business; it will encourage them to do business, an foreign investors too will come into the sector with the needed investment,” the source, a high ranking stakeholder in the oil industry, said.
On fears that there could be fuel shortage as the yuletide approaches if the policy is implemented, the CPPE boss argued 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.
Yusuf noted that the suspension of the 15 per cent import duty on petrol and diesel carries profound implications for domestic refining, investment confidence, macroeconomic stability and the long-term competitiveness of the petroleum downstream sector.
He called for the reinstatement of the tax which he described as “essential to restoring competitive balance and safeguarding domestic refining investments.” According to him, the policy was aimed to serve as an industrial protection instrument designed to support emerging private refineries; promote backward integration and industrial development; ensure a level playing field for domestic producers; conserve scarce foreign exchange; protect jobs, stimulate local value addition; reduce exposure to global supply instability and encourage long-term investments in refining and petrochemicals
These objectives, laudable as they are, are now being threatened with the policy suspension. For instance, Dr. Yusuf noted that investors, including the Dangote Refinery and other modular refinery operators, made multi-billion-dollar commitments based on policy stability and the assurance of an environment that rewards local production. Therefore, he argued, suspending the duty undermines this protective framework and exposes domestic refiners to inequitable competition from importers benefiting from vastly superior international conditions.
According to the CPPE boss, local refiners operate within a high-cost environment shaped by expensive energy and self-generation; infrastructure gaps and logistics bottlenecks; high cost of capital; security-related risks and inefficiencies in ports and transport systems. These structural disadvantages, he argued, make parity with imported products impossible without protective measures.
He warned that reverting to heavy import dependence reopens vulnerabilities to global price volatility, geopolitical disruptions and supply insecurity- the same conditions that previously collapsed public refineries and created a fiscally ruinous subsidy regime.
Yusuf, an economist, equally agreed that petroleum importation is one of Nigeria’s largest consumers of foreign exchange. Consequently, he explained that increased imports of the product will heighten pressure on the naira; fuel inflation through exchange-rate pass-through; deepen balance-of-payments deficits and undermine macroeconomic stability.
This, he said will further come with loss of jobs and industrial value chains given that domestic refining stimulates broad value-chain activities in petrochemicals; plastics; logistics and transport; engineering services and fabrication and construction. Therefore, having an unrestrained importation effectively exports these jobs and opportunities to foreign economies.
The CPPE warned that frequent policy reversals weaken investor sentiment across the economy including 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,” Dr. Yusuf said.
Justifying the need to protect indigenous firms, the CPPE boss explained that fair competition requires comparable operating conditions. He enumerated the challenges faced by Nigerian refiners to include 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. The Dangote Refinery and emerging modular refineries are transformative national assets. Safeguarding them aligns squarely with Nigeria’s long-term economic and strategic goals,” the CPPE said.
He cited major economies that protects their strategic industries to include the United States which jealously guards her steel, agriculture, aviation, energy sectors; European Union which protects its manufacturing, agriculture, pharmaceuticals; India guards her refining and petrochemicals and China, which devised a comprehensive industrial policy to protect local capacity.
“Nigeria already maintains an Import Adjustment Tax List for strategic sectors such as agro allied, cement, sugar, steel, pharmaceuticals and automobiles. Therefore, extending similar protection to domestic refining is both logical and necessary,” Dr. Yusuf said.
He further argued that there exists a false dichotomy between domestic refining and price stability. “Strengthening refining capacity and moderating fuel prices are not mutually exclusive. With the right policy mix—including fiscal incentives, logistics support, transparent pricing and guided importation, Nigeria can achieve both goals simultaneously, because domestic refining, over the long term, reduces costs by limiting forex exposure, import-related logistics and premiums associated with global volatility,” Dr. Yusuf said.
In similar vein, the Ogun State Chamber of Commerce, Industry, Mines and Agriculture (OGUNCCIMA) also faulted the Federal Government’s decision to suspend the proposed implementation of the 15 per cent import duty on petrol and diesel imports. It insisted that the rescinding of the policy could slow down the nation’s progress toward energy independence and weaken investor confidence in the refining sector.
“The suspension of the 15 per cent fuel import tariff is disappointing. The policy was a step in the right direction to promote local refining, reduce dependence on imports, conserve foreign exchange and create a fair competitive environment for domestic producers. Its reversal sends a wrong signal to investors who have shown confidence in Nigeria’s energy sector,” OGUNCCIMA’s President, Niyi Oshiyemi, said.
A professor of petroleum economics, Prof. Wumi Iledare, argued that the 15 per cent import duty should have been viewed as a fiscal and market-stabilising instrument, not a political gesture.
“The intent is clear — to protect emerging local refineries, encourage domestic value addition, and gradually align Nigeria’s downstream market with its growing industrial capacity. In economic terms, this policy aimed to reduce import dependence, conserve foreign exchange, and support refinery viability. Domestic producers like Dangote Refinery and the rehabilitated NNPC plants need a short breathing space to stabilise operations and recover heavy capital investments. Many countries have used such temporary tariffs to nurture new industries.
“Of course, prices may rise slightly in the short term — but that’s part of the transition toward long-term efficiency where Nigeria meets its own fuel needs competitively. Let’s keep things in perspective: petrol here sells around N890–N965 per litre, while in Benin N1,800–N1,875, Togo N1,835, Ghana N1,550–N1,995, and Senegal N2,538. Nigeria still remains the lowest-priced market in the sub-region. The task now is ensuring border vigilance and market discipline to prevent arbitrage,” he contended.

Economy

Dangote: Fed. govt.’s economic reforms driving Nigeria’s economic recovery, restoring investors’ confidence

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· Says sustained reforms, policies will make Nigeria Africa’s most attractive investment destinations

· Ties Refinery’s progress to govt.’s supportive investment, domestic industrialisation policies

By Oluwayanmife Lucas

President and Chief Executive, Dangote Industries Limited (DIL), Aliko Dangote, has commended the Federal Government for implementing bold and transformative economic reforms that are repositioning Nigeria for sustainable growth, strengthening investor confidence, and accelerating the country’s economic recovery

Dangote hailed the ongoing fiscal, monetary, and regulatory reforms of the government, insisting that it has contributed significantly to improving macroeconomic stability, enhancing productivity across key sectors, increasing Nigeria’s attractiveness as an investment destination, and fostering a more resilient business environment. He noted that the positive outcomes emerging from the reform agenda underscore the importance of consistent, market-driven policies in advancing national development and economic prosperity.

“The economic reforms being implemented by the Federal Government are beginning to yield tangible results. We are witnessing improved economic activity, stronger investor confidence, increased industrial productivity, and a more resilient business environment. These measures are laying a solid foundation for sustainable economic growth and long-term prosperity for Nigeria,” Dangote stated.

 

According to the DIL boss, the reforms have created a more enabling operating environment for businesses, particularly large-scale manufacturing and industrial enterprises that are critical to economic diversification, job creation, foreign exchange generation, and national competitiveness. He added that government initiatives aimed at improving efficiency, promoting investment, enhancing transparency, and supporting domestic production are providing a solid framework for industrial expansion.

“We commend the Federal Government for its courage and determination in implementing reforms that are essential for economic transformation. While every reform process comes with initial challenges, the benefits are increasingly evident in stronger economic indicators, improved business confidence, and renewed investor interest in Nigeria,” he said.

Dangote further observed that the government’s favourable policy environment has supported the continued growth and efficient operation of the Dangote Petroleum Refinery and Petrochemicals complex, Africa’s largest integrated refining and petrochemical facility. He noted that policy measures designed to strengthen local refining capacity, reduce import dependence, improve energy security, and encourage value addition have contributed meaningfully to the refinery’s success and Nigeria’s broader economic development objectives.

“The progress being recorded at the Dangote Petroleum Refinery and Petrochemicals complex is closely linked to a policy environment that encourages investment, supports domestic industrialisation, and promotes self-sufficiency. These reforms are helping Nigerian businesses to plan with greater certainty, invest with confidence, and compete effectively on the global stage,” he added.

He stated that the refinery’s increasing production capacity and expanding export footprint are contributing significantly to Nigeria’s economic resurgence by generating foreign exchange earnings, creating employment opportunities, strengthening local supply chains, and positioning the country as a leading energy and manufacturing hub.

Reaffirming the Group’s commitment to supporting the Federal Government’s economic agenda, Dangote assured that the DIL would continue to invest in strategic sectors, drive innovation, promote industrial development, and create sustainable employment opportunities.

“Our vision has always been to support Nigeria’s economic development through transformative investments. Today, we are witnessing how the combination of private-sector commitment and decisive government policies can unlock unprecedented opportunities for national growth. The refinery, petrochemical operations, fertiliser production, and our other industrial investments are helping to build a more self-reliant, competitive, and prosperous economy,” he said.

He expressed confidence that sustained reforms, policy consistency, and stronger collaboration between the public and private sectors would further stimulate economic growth, attract increased foreign direct investment, and reinforce Nigeria’s position as one of Africa’s most attractive investment destinations.

“Nigeria is on the path to becoming one of the world’s leading industrial and economic powers. With continued policy consistency, robust private-sector participation, and investment-led growth, the future of our economy is exceptionally bright,” Dangote concluded

 

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Economy

Nigeria’s external reserves hit 18-year high at $53.99b

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By Oluwayanmife Lucas

Nigeria’s external reserves have reached an 18-year high of $53.99 billiion on September 2. The reserves position puts the naira on course for its best year since 2018 ahead of FTSE Russell reinclusion on September 21.

According to data from the Central Bank of Nigeria (CBN), external reserves were at $53.1 on August 24. The current reserves position is far higher that CBN’s projected $51.04 billion year-end target, and will cover over 12 months import for the economy.

Nigeria’s external reserves, which provide the CBN with the capacity to support the local currency and meet external obligations, have continued to rise steadily. Further analysis showed that the liquid portion of the external reserves stood at $52.5 billion.

Brent crude yesterday traded around $95.5 per barrel—above Nigeria’s 2026 federal budget benchmark of $64.85—the price rebound would largely bolster the country’s fiscal revenues.

As an oil exporter, Nigeria continues to earn more petrodollars and to support naira stability ans bolster external reserves.

In its economic projections for 2026, the CBN targeted stronger oil earnings, foreign exchange market reforms and improved external capital inflows to achieve year-end reserves target.

Analysts said the current reserves position reinforces the steady growth in Nigeria’s external buffers.

The founder/Chief Executive Officer of the Centre for the Promotion of Public Enterprise (CPPE), Dr Muda Yusuf, earlier hinted at a positive outlook for Nigeria’s external reserves as he does not see anything derailing the forex and fiscal reforms that have brought about stability and improvement in external reserves.

Yusuf said, ‘’Well, the outlook for me is positive because I don’t see anything derailing these forex reforms, fuel subsidy etc. It is these reforms that have brought about stability”.

CBN data sfurther showed that Nigeria’s external reserves maintained a steady upward surge in recent months.

The reserves started June at $49.80 billion and crossed the $50 billion mark by June 5, reaching $50.12 billion.

On June 15, reserves had increased further to $50.81 billion before rising to current position. The reserves stood at $51.9 billion on July 31, and contrinued.

The sustained increase reflects stronger foreign exchange inflows and improved liquidity conditions in the country’s external sector.

The CBN Governor Olayemi Cardoso, said: “This strong buffer continues to reinforce investor confidence in the Nigerian economy and support exchange rate stability.”

The CBN’s decision to clear over $7 billion unsettled FX backlogs raised investors’ confidence in the economy, supporting dollar inflows and foreign reserves accretion, Cardoso said.

The CBN boss had explained that although he had no idea where the fund for the backlog clearance would come from, when he assumed office, but he believed it was the right thing to do, and gave investors his word.

He said: “Credibility is at the heart of any central bank. If you don’t have credibility, people do not trust you and they do not invest in your economy. When I took office, I made a promise we would pay the backlog, the verifiable backlog of monies that were owed by Nigeria to third parties.”

 

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Economy

‘Good governance critical to Nigeria’s $1tr economy ambition’

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By Olamide Akintunde

 

Experts in corporate governance, finance and public policy have said Nigeria must institutionalise good governance, sustain economic reforms and strengthen collaboration between the public and private sectors to accelerate economic growth and realise its ambition of becoming a $1 trillion economy.

 

The call came at the 2026 National Corporate Governance Summit themed “Implementing Good Governance for Economic Acceleration: Consolidating Public and Private Sector Partnership,” organised by the Institute of Directors (IoD) Centre for Corporate Governance, the Financial Reporting Council of Nigeria (FRC), the Ministry of Finance Incorporated (MOFI) and the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN).

Speaking on the theme, the Special Adviser to the President on Economic Affairs, Dr. Tope Fasua, who represented the Vice President, Kashim Shettima, said President Bola Tinubu’s administration remained committed to implementing reforms capable of building a resilient and competitive economy.

He said the government’s economic reforms including foreign exchange reforms, tax reforms and subsidy removal must be complemented by strong corporate governance in both public institutions and private enterprises.

“The public sector can create the enabling environment through reforms, but it is the private sector that translates those policies into investments, jobs and wealth creation. Both sectors must operate with integrity, accountability and transparency,” he said.

Fasua emphasised that governance should not be treated as a mere compliance exercise but as the foundation upon which investor confidence and sustainable economic development are built.
Speaking on the sidelines of the summit, he explained that the Federal Government’s reforms were designed to create long term economic transformation rather than deliver short term political gains, while calling for greater support for domestic investment and industrialisation.

Delivering the keynote address, the Chairman of Nigerian Breweries Plc, Mrs. Juliet Anammah, described the summit’s theme as timely, saying good governance must move beyond compliance and accountability to become a strategic tool for driving Nigeria’s economic rebirth. She maintained that stronger partnerships between government and the private sector would be critical to achieving sustainable economic acceleration and improving the quality of life of Nigerians.

 

According to her, the country’s immediate objective should be to move from a lower-middle-income economy to an upper-middle-income economy through sustained industrialisation, innovation and long-term policy implementation.

She acknowledged that the Federal Government had undertaken bold reforms, including fuel subsidy removal, foreign exchange unification and bank recapitalisation, saying the difficult decisions had helped stabilise the economy.

While noting that macroeconomic stability was encouraging, Anammah said it was not the final destination.
“Stabilisation is not the end goal. The destination is economic rebirth that improves household incomes, creates quality careers, expands access to healthcare and education and delivers reliable infrastructure,” she said.

Drawing lessons from countries such as Vietnam and Morocco, she argued that Nigeria must embrace industrialisation by producing more sophisticated and value-added products instead of relying on primary commodities.

She noted that sectors such as petrochemicals, agro-processing, automotive, renewable energy and manufacturing already possess enormous growth potential but require consistent industrial policies supported by sound governance to unlock higher levels of economic complexity.

According to her, policy inconsistency remains one of Nigeria’s greatest development challenges, urging governments at all levels to sustain industrial policies beyond political administrations.
She also advocated stronger competition among states, independent evaluation of industrial policies and closer collaboration between government and the private sector to deepen investment and accelerate economic growth.
She concluded that achieving meaningful economic acceleration would require strong corporate governance, sustained industrial policies and close collaboration between government and the private sector, noting that only through such coordinated efforts can Nigeria transition from an economy driven by informal livelihoods to one characterised by productive industries, quality careers and rising prosperity for its citizens.

 

Earlier, Chairman of the Board of Governors of the IoD Centre for Corporate Governance, Dr. Uche Eke, said the summit deliberately shifted the conversation from governance principles to implementation, stressing that sustainable economic growth would only be achieved when sound governance becomes embedded across both public institutions and private enterprises.

He explained that Nigeria had spent years identifying governance challenges and developing frameworks, stressing that the time had come for practical execution.
“We have stayed too long articulating the issues. The focus now is implementation. We must embed sound corporate governance practices in both public institutions and private organisations to guarantee sustainability beyond current leadership,” he said.

Eke noted that the summit sought to build national consensus among regulators, government institutions and the private sector on practical governance reforms capable of improving transparency, accountability and economic competitiveness.

He stressed that merit, competence and diversity should determine appointments into leadership positions rather than nepotism or political considerations.
“If Nigeria is serious about building a one trillion dollar economy, we must consistently place the right people in leadership positions, promote diversity of skills and hold leaders accountable for results,” he said.

Also speaking, Managing Director and Chief Executive Officer of MOFI, Dr. Armstrong Takang, said government alone cannot build the economy Nigeria desires, stressing that strong corporate governance is the foundation for effective public-private partnerships, investor confidence and long-term economic development.

He argued that contrary to the belief that government should not participate in business, successful economies such as China had demonstrated that well-governed state-owned enterprises could become major drivers of investment, industrialisation and economic growth.

Takang said MOFI’s recent experience showed that institutions with strong corporate governance frameworks consistently attracted greater investment and delivered better value creation.
According to him, governance reforms introduced across MOFI’s portfolio companies had significantly improved investor confidence and strengthened the performance of government-owned assets.

He cited initiatives including the MOFI Real Estate Investment Fund and the proposed Metro Rail Infrastructure Programme as examples of projects attracting institutional investment because of strong governance structures.
“Government alone cannot build the economy we desire. We need partnerships with the private sector and institutional investors, and corporate governance remains the common denominator that inspires confidence and mobilises capital,” he said.

Stakeholders and participants at the summit agreed that sustaining reforms, strengthening institutions and entrenching transparency across both public and private organisations would be critical to accelerating economic growth, boosting investor confidence and positioning Nigeria to achieve its long-term development ambitions.

 

 

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