Northern industrialists laud 15% fuel import duty, back local refining drive

Northern industrialists laud 15% fuel import duty, back local refining drive

By Benedicta Aboh

Industrialists in Northern Nigeria have endorsed the Federal Government’s 15 per cent import duty on petroleum products, describing the policy as a strategic move to boost local refining, strengthen value addition in the oil and gas sector, and enhance competitiveness for local manufacturers.

Speaking during a visit to the Dangote Group’s regional office in Abuja, Chairman of the Sharada-Challawa branch of the Manufacturers Association of Nigeria (MAN), Muhammad Nura Madugu, said manufacturers remain aligned with policies that stimulate industrial growth, promote local content, and position Nigerian products for global competitiveness.

Madugu noted that manufacturers assess government policies objectively, considering both their economic benefits and potential challenges. He highlighted numerous opportunities from derivatives produced by the Dangote Refinery, including petrol, diesel, kerosene, jet fuel, LPG, naphtha, bitumen, lubricants, fuel oil, and petrochemical feedstocks critical to plastics, detergents, and synthetic fibre production.

The visit followed the 2025 MAN Product Exhibition in Kano, sponsored by Dangote Industries Limited. The delegation also presented Awards of Excellence to Dangote Group President, Aliko Dangote, and his Special Adviser on Strategic Relations and Projects, Fatima Wali-Abdurrahman.

Responding, Wali-Abdurrahman reaffirmed the refinery’s commitment to job creation and strengthening local manufacturing linkages. She stressed that collaboration with local industries will create new value chains, support exports, and deepen industrial capacity.

Dangote recently announced plans to expand the refinery’s capacity to 1.4 million barrels per day, a development projected to generate about 65,000 jobs.

Also commenting, Chairman of MAN’s Kano-Jigawa branch, Muhammad Bello Isyaku Umar, hailed the new tariff as a step toward reducing fuel imports, easing pressure on foreign exchange, and strengthening the naira. He added that the policy could attract more investment into domestic refining and increase government revenue, though shortages could raise pump prices.

President Bola Tinubu approved the tariff earlier this week, describing it as a long-term strategy to strengthen energy independence. According to his Special Adviser on Media and Public Communications, Sunday Dare, the policy aims to reverse decades of reliance on imported fuel and retain value within the local economy.

Since commencing operations in 2024, the Dangote Refinery has emerged as a major player in Nigeria’s downstream sector. With an installed capacity of 650,000 barrels per day, it says it can meet national demand. Group spokesperson, Anthony Chiejina, disclosed that the refinery currently loads 45 million litres of petrol and 25 million litres of diesel daily, exceeding Nigeria’s consumption needs.

He added that the refinery is collaborating with regulators and distribution partners to ensure uninterrupted nationwide supply, improve energy security, and reduce dependence on imports.