Otedola Backs 15% Fuel Import Duty to Protect Refineries, Investments

Nigerian billionaire businessman, Femi Otedola, has publicly endorsed President Bola Ahmed Tinubu’s recent approval of a 15 per cent import duty on both petrol and diesel, arguing that the tariff is crucial for safeguarding massive investments in Nigeria’s refining infrastructure.

Dependable NG reports that Otedola, in a statement released on his official X account, commended President Tinubu for the “bold and decisive step,” noting that the policy is a critical move toward protecting local industries that have already committed billions of dollars to domestic production and refining capacity. He stressed that Nigeria cannot afford to allow history to repeat itself within the energy sector, particularly now that the country possesses the capacity to meet its petrol and diesel requirements locally.

“This tariff not only protects the billions of dollars already invested in refining infrastructure but also underscores the government’s commitment to driving industrialisation, creating employment, and building a sustainable energy future for our nation,” Otedola wrote. He warned that for decades, Nigeria’s industrial base, including sectors like textiles and local vehicle assembly, suffered severely from the unchecked importation of cheaper and often substandard goods.

The businessman further noted that the policy, once fully implemented, will help establish a stable and sustainable pricing regime within the downstream oil sector. This, he argued, would contribute significantly to greater control of inflation and long-term economic stability. Otedola concluded by praising the President’s leadership, asserting that Tinubu’s ability to deploy policy as a catalyst for economic transformation, with a focus on empowering local producers, exemplifies the visionary leadership required to steer Nigeria towards its ambition of becoming a $1 trillion economy. The policy decision has attracted mixed reactions, with economic analysts like Muda Yusuf and Bismarck Rewane supporting the move, while an APC chieftain, Ayiri Emami, has condemned it, warning that the tariff could potentially increase fuel prices nationwide above the current price of between N945 and N960 per litre.