Centre for the Promotion of Private Enterprise (CPPE) has expressed support for the Federal Government’s 15 per cent import duty on refined petroleum products, describing it as a progressive step towards reviving Nigeria’s industrial base.
The Chief Executive Officer, CPPE, Dr Muda Yusuf, said the move aligned with a broader call for strategic protectionism.
Yusuf described strategic protectionism as a calibrated policy framework to safeguard domestic industries, build competitiveness, and strengthen national economic resilience.
He noted that the continuous importation of petroleum products over the past two decades had imposed immense costs on the Nigerian economy.
Yusuf said the consequences included sustained pressure on foreign exchange reserves, fiscal instability, and the collapse of domestic refining.
“The 15 per cent import duty on refined petroleum products—petrol and diesel—is therefore a welcome development and a progressive and corrective measure.
“This modest protection will provide the policy support needed for domestic refineries such as Dangote Refinery, NNPCL refineries, and emerging modular refineries to thrive, restore Nigeria’s refining capacity, and reduce foreign exchange exposure,” he said.
Yusuf said history showed that no country has achieved industrialisation through indiscriminate trade liberalisation.
He noted that industrialisation was central to Nigeria’s long-term economic growth
“CPPE advocates strategic protectionism—a calibrated policy approach that safeguards domestic and emerging industries while building competitiveness and self-sufficiency.
“The recent 15 per cent import duty on refined petroleum products represents a positive policy proposition.
“When complemented with broader industrial support measures, it can catalyse industrial expansion, conserve foreign exchange, create jobs, and promote economic resilience,” he said.
Yusuf noted that Nigeria’s excessive dependence on imports over the past few decades had weakened its productive base, eroded competitiveness, and exposed the economy to external shocks.
He said sectors that had enjoyed measured protection—such as cement, flour, and beverages—had recorded remarkable domestic growth and value addition.
He added that Asian success stories—China, South Korea, India, and Malaysia—built their industrial strength through inward-looking strategies during their formative decades.
According to him, they protected infant industries, promoted local content, and developed domestic value chains before gradually opening up to global competition.
Yusuf said by shielding emerging industries from premature exposure to unfair competition, strategic protectionism encouraged domestic investment and fostered local value addition.
He added that it allowed firms to achieve efficiency and scale before competing globally.
“For Nigeria, this approach is not economic isolation or the creation of monopolies.
“Rather, it is a self-strengthening strategy to ensure the domestic economy develops sufficient capacity to compete effectively on the global stage,” he said.
The CPPE boss stated that to ensure protection yielded sustainable benefits, government must complement it with fiscal incentives and targeted subsidies.
He added that access to low-cost financing, reliable and affordable energy supply, strategic infrastructure investment and streamlined regulatory processes were critical.
“As domestic industries scale up, production costs will decline, leading to price stabilisation and consumer welfare gains,” he said.
