We cannot restore them to functionality under this current dispensation, says MAN DG
‘15% import tariff on petrol will strengthen patronage of Made-in-Nigeria goods’
Director-General, Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, has called for the full privatisation of all government-owned refineries, saying it is evident that the country may never succeed in restoring them to functionality under this current dispensation.
Speaking through a statement yesterday, the DG said selling off the refineries will stop the commitment of extremely scarce financial resources to an evidently irredeemable venture.
He, however, commended the recent approval of the 15 per cent import tariff on petrol and diesel, noting that it aligns with the Nigeria First agenda and MAN’s long-standing advocacy for local content development and patronage of Made-in-Nigeria goods.
Adding that this has reassured domestic manufacturers, he said it exemplifies the commitment to guaranteeing energy sufficiency and security as well as improving the overall well-being of Nigerians. He said it will help promote local value addition, strengthen domestic refining capacity, conserve FX, and advance Nigeria’s long-term industrialisation objectives.
The DG further noted that this will ensure that the Naira-for-crude arrangement will guarantee effective and reliable supply of crude to the local refineries and reduce pressure on scarce FX.
He said, “It will also attract more investors, including holders of the 30 refinery licences, 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.”
Regretting that despite being blessed with enormous oil resources, he said the country still commits scarce FX in billions of dollars to import refined petroleum, adding that supporting local refining capacity through appropriate policy tools will improve the Naira’s stability and foster a more favourable macroeconomic environment for investment. He added that the tariff will accelerate the operational readiness of domestic refineries, reduce disruptions, and stabilise energy supply to industries.
“It will also encourage the utilisation of local refining capacity and promote backward integration across the energy value chain, 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. It will also promote local content development and stimulate demand for Nigerian engineering, fabrication, and logistics services,” he stressed.
Calling for transparent, efficient, and well-coordinated implementation to ensure its benefits reach both industry and consumers, safeguard competitiveness, and prevent unintended cost burdens, the DG noted that the government and its regulators, including PPPRA, NMDPRA, and FCCPC, must closely monitor domestic pricing to prevent excessive mark-ups or anti-competitive behaviour.
During the initial months of implementation, he said the government should support local refiners to ensure adequate fuel availability and prevent supply shocks or speculative hoarding, particularly with the festive period approaching. “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.
“Also, the government must provide targeted incentives or rebates for small and medium manufacturers reliant on diesel-powered generators during the transition period; 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.
“The government should foster continuous engagement among refiners, marketers, regulators, and consumers to prevent disputes, ensure policy coherence, and sustain market stability,” he said.
Expressing a commitment to supporting the Federal Government’s Nigeria First policy direction, especially on local content development and homegrown industrialisation, he reiterated that this tariff will accelerate the country’s journey towards energy sovereignty, industrial competitiveness, and sustainable economic growth, all anchored on the strength of Made-in-Nigeria.
