15% Petrol Import Tax Requires Strategic Roll Out – LCCI
The Lagos Chamber of Commerce and Industry (LCCI) has stressed the need for a measured and strategic rollout of the 15 per cent petroleum import tax to ensure sustainable economic impact.
The Director-General, LCCI, Dr Chinyere Almona, gave the advice in a statement on Monday in Lagos.
Almona noted the recent decision by the Federal Government to impose a 15 per cent import tax on petrol and diesel, a move aimed at curbing import dependence and promoting local refining capacity.
She said while the policy direction aligned with the nation’s long-term objective of achieving energy self-sufficiency and naira strengthening, a strategic rollout was imperative.
Almona noted that Nigeria was already experiencing cost-of-living pressures, supply-chain, and inflation challenges and that the business community would be sensitive to further cost shocks.
“The chamber recognises that discouraging fuel importation is a necessary step towards achieving domestic energy security, stimulating investment in local refineries, and deepening the downstream petroleum value chain.
“However, LCCI expresses concern about the current adequacy of local refining capacity to meet national demand.
“A premature restriction on imports, without sufficient domestic production, could lead to supply shortages, higher pump prices, and inflationary pressures across critical sectors,” she said.
Almona called on the Federal Government to prioritise the full operationalisation and optimisation of local refineries, both public and private, including modular refineries and the recently revitalised major refining facilities.
She stated that a comprehensive framework for crude oil supply to these refineries in Naira rather than foreign exchange would significantly enhance cost efficiency, stabilise production, and strengthen the local value chain.
She said the chamber’s interest lied in a diversified downstream sector where multiple refineries, modular plants, and logistics firms thrive.
She urged government to resolve outstanding labour union issues and create an enabling environment that fostered industrial harmony and private sector confidence.
According to her, ensuring clarity, consistency, and transparency in the implementation of the new tax regime will be crucial in preventing market distortions and sustaining investor trust.
“While the reform is justified from an industrial policy standpoint, its success depends on practical implementation, robust safeguards, and parallel reforms to alleviate cost burdens on businesses and consumers.
“With local capacity not yet established, this tax will increase the cost of fuels as long as imports continue.
“Government needs to address the inhibiting factors against local production and refining before imposing this levy to discourage imports and support local production,” she said.
Almona recommended that the implementation of the tax policy be postponed.
She advised that during the transition period government demonstrate its commitment through action by empowering local refiners through an efficient crude-for-Naira supply chain that ensured sufficient crude.
“With this, refiners can boost their refining capacity with a stable supply of crude and adequately meet domestic demand at competitive rates.
“At this point, the imposition of an import tax will directly discourage importation and boost demand for the locally refined products,” she said. Zenith Bank Price Target Sets at N81 after Q3 Earnings
