The Petroleum Products Retail Owners Association of Nigeria (PETROAN) has lauded the Federal Government’s decision to ban the importation of foreign goods produced locally.
Dr Billy Gillis-Harry, National president of PETROAN, on Tuesday while commending government’s efforts to strengthen the domestic economy and promote local content, called for careful implementation to avoid unintended consequences.
He emphasised the need for careful consideration and implementation to avoid unintended consequences.
Gillis-Harry urged the government to ensure that the policy does not lead to shortages or price increases, particularly in the petroleum sector, where local refining capacity is still being developed.
He advised that essential and sensitive products, such as petroleum products,
pharmaceuticals, and other highly consumable goods, should be gradually phased out.
This, he said was because some products may not be readily available locally, or their local production may be insufficient to meet demand, leading to shortages and price hikes.
“Factors that may necessitate importing goods include: unavailability of specialised technology or expertise locally: higher quality standards of imported goods: economies of scale favouring imports and strategic or critical nature of the product,” he said.
He said by promoting local content, the policy could stimulate economic growth, create jobs, increase domestic production, reduce reliance on foreign goods which could help narrow the trade deficit and conserve foreign exchange.
Speaking on its disadvantages, he said banning imports could lead to shortages of essential goods, particularly if local production was insufficient or unreliable.
“Limiting importation can result in higher prices for consumers, as local producers may not be able to meet demand efficiently, leading to inflationary pressures.
“There is need for energy security. “Our primary concern is the availability and affordability of petroleum products in Nigeria to meet the daily consumption volume of over 46 million litres of petrol and other petroleum products.
“We must ensure that our policies do not compromise energy security, as this could have far-reaching consequences for the economy and the well-being of Nigerians,” he said.
He however called for increased investment in local refining infrastructure and support for domestic industries to enhance their competitiveness.
reports that President Bola Tinubu on Monday okayed a ban on the importation of foreign goods by Ministries, Departments, and Agencies on goods or services available in the country, without a waiver from the Bureau of Public Procurement.
Tinubu, through its Minister of Information and National Orientation, Mohammed Idris, said, “The Nigeria First Policy places our country at the centre of public procurement and business activity, with a strong focus on empowering local industries.
”It is designed to foster a new business culture that is bold, confident, and uniquely Nigerian,”.
The new policy dubbed the ‘Renewed Hope Nigeria First Policy’ aims at strengthening the domestic economy, promoting local content, and reducing Nigeria’s dependence on imports.
The minister said that the new policy mirrored the U.S. “America First Policy.’’
However, he warned that “all MDAs must review and resubmit their procurement plans in line with the new policy,” and breaches would attract disciplinary action and possible cancellation of future procurement processes.
He cited Nigeria’s continued importation of sugar inspite of having a functioning Sugar Council and several domestic producers as a prime example of inefficiency the policy seeks to eliminate.
He said: “government money must now work for the Nigerian people. And contractors will no longer be allowed to act as mere intermediaries importing foreign goods while Nigerian factories remain underutilised”
The Nigeria First Policy is the latest of the many economic reforms under Tinubu’s administration, which include the removal of fuel subsidy and naira floating.
