Photo caption: MAN logo
By Charles Okonji
In its drive for Nigeria First Policy enforcement, local content implementation, the Manufacturers Association of Nigeria (MAN) has thrown its weight behind the Federal Government for its recent approval of a 15% import tariff on petrol and diesel.
According to the Director-General of MAN, Mr Segun Ajayi-Kadir, in a statement made available to the press, the strategic step and patriotic policy aligns with the Nigeria First agenda which was MAN’s long-standing advocacy for local content development and patronage of Made-in-Nigeria.
“It is heartening that this is coming less than one Month after the 53rd AGM of MAN with the theme: Nigeria First: Prioritizing Patronage of Made in Nigeria Products.
“This strategic policy has reassured domestic manufacturers that Government is attentive to the imperatives of growing indigenous manufacturing. It exemplifies governments commitment to halting the perennial bleeding of our patrimony; asserting the sovereignty of the great country; guaranteeing energy sufficiency and security, and improving the overall wellbeing of Nigerians in this regards.
“This is a sure step in the promotion of local value addition, strengthening domestic refining capacity, conserving foreign exchange, and advancing Nigeria’s long-term industrialisation objectives.” Ajayi-Kadir stated.
Outlining the position of MAN, the DG stressed the need for the implementation of Petroleum Industry Bill (PIA), emphasising that it would ensure effective and reliable supply of crude to the local refineries to ease pressure mounted on forex.
“Unfettered implementation of the domestic supply of crude and enshrined in the PIA. This will ensure the Naira for crude arrangement that will ensure effective and reliable supply of crude to the local refineries and reduce the pressure on our scarce foreign exchange. It will also attract more investors, including the holders of the 30 refinery licenses to commit resources in the sector.
“There is no better path to fixing Nigeria’s economy than protecting local industries, encouraging local patronage, fostering value addition, and promoting industrial development anchored on local content.
Nigeria is blessed with enormous oil resources. Unfortunately, scarce forex in billions of dollars is still being spent on importing refined petroleum. Supporting local refining capacity through appropriate policy tools will conserve scarce foreign exchange, improve the stability of the Naira, and foster a more favourable macroeconomic environment for investment.” He noted.
Summarily, the MAN; “MAN duly recognises the importance, significance, and necessity of the approval of the 15% import tariff on petroleum products, petrol and diesel. MAN acknowledges that the tariff is a rightful, deliberately designed policy instrument intended to protect and encourage domestic producers, curb dumping, and create a stable environment for local refiners to thrive.
“The tariff will accelerate operational readiness of domestic refineries, thereby reducing disruptions and stabilising energy supply to industries. We support the 15% import tariff is an industrial policy instrument that will: Encourage the utilisation of local refining capacity and promote backward integration across the energy value chain. Conserve foreign exchange by reducing the nation’s dependence on imported refined petroleum products. Strengthen the manufacturing base through a more stable and predictable fuel supply. Generate employment opportunities, build technical expertise, and strengthen industrial linkages between refineries and manufacturers. Promote local content development and stimulate demand for Nigerian engineering, fabrication and logistics services.
“MAN views this policy as a vital step in achieving energy independence and industrial sustainability, both of which are prerequisites for Nigeria’s economic transformation.” Ajayi-Kadir averred.
He called on the government to embrace transparent, efficient, and well-coordinated implementation to ensure its benefits reach both industry and consumers, safeguard competitiveness, and prevent unintended cost burdens.
He outlined MAN decision as follows; “Transparent price monitoring: Government and regulators (PPPRA, NMDPRA, FCCPC) should closely monitor domestic pricing to prevent excessive mark-ups or anti-competitive behaviour. Stable transition period: During the initial months of implementation, the government should support local refiners to ensure adequate fuel availability and prevent supply shocks or speculative hoarding, particularly with the festive period approaching.
“Reinvestment of tariff revenue: Proceeds from the import duty should be reinvested into energy infrastructure, refinery efficiency, and power support schemes for industries, including credit facilities for industrial energy transition and renewable adoption.
- SMIs support measures: Provide targeted incentives or rebates for small and medium manufacturers reliant on diesel-powered generators during the transition period. Support the development of more local refineries: The government should create an enabling environment and provide targeted incentives to attract investment in additional modular and conventional refineries, thereby strengthening domestic refining capacity, promoting competition, and ensuring long-term energy security.
“Ensure stakeholder harmony in the energy sector: The government should foster continuous engagement among refiners, marketers, regulators, and consumers to prevent disputes, ensure policy coherence, and sustain market stability. Move speedily to fully privatize the government owned refinery as it is evident that we may never succeed in restoring them to functionality under the current dispensation. Selling off the refineries will stop the commitment of our scarce financial resources to an evidently irredeemable venture.”
