The Crude Oil Refinery Owners Association of Nigeria (CORAN) has said that the FG’s 15 per cent ad-valorem import duty on petrol and diesel imports into Nigeria is a commendable decision. He, however, revealed that the policy will only yield its expected result if it is implemented alongside other supportive measures that strengthen domestic refining capacity.
Reacting to the latest development, the Publicity Secretary of the Crude Oil Refinery Owners Association of Nigeria (CORAN), Eche Idoko, said that without complementary policies, the tariff could end up becoming counterproductive.
According to him, for the tariff to work, there must be stable pricing for domestic crude supply, fast crude allocation to local refineries and an effective rollout of midstream and downstream intervention programs.
He stated that without a proper plan by the government, the policy could raise the cost of imported products without a corresponding increase in local supply.
“We consider the introduction of the 15% tariff on imported refined petroleum products a welcome development, as it aligns with the national objective of promoting local refining and discouraging over-reliance on imported fuels He, however, pointed out that the policy can only deliver its intended benefits if implemented alongside other supportive measures that strengthen domestic refining capacity.
Without complementary policies—such as fair and stable pricing for domestic crude supply, guaranteed and timely crude allocation to local refineries, and the effective rollout of midstream and downstream intervention programs—this tariff risks becoming counterproductive.
In such a scenario, the policy may increase the cost of imported products without a corresponding increase in local supply, thereby creating artificial scarcity and imposing additional hardship on consumers, much like the experience that followed the removal of fuel subsidy,” he said.
He further noted that the government must work on integrating trade protection with supply-side reforms for lasting solutions.
Eche Idoko concluded by saying that energy security can only be achieved with a balanced implementation framework.
“By ensuring that domestic refiners have access to affordable crude, finance, infrastructure, and a predictable policy environment, the 15% tariff can serve as a catalyst for growth rather than a trigger for inflation or market distortion.
Only through such a balanced implementation framework can Nigeria achieve the twin objectives of energy security,” he added.
