Northern Manufacturers hail 15% import duty on petroleum products,
Say policy will boost local production , industrial growth
Kola Oyelere Kano
Industrialists from Northern Nigeria have commended the Federal Government’s decision to impose a 15 per cent import duty on petroleum products, describing the move as a bold and strategic step to promote local refining, stimulate industrial growth, and strengthen Nigeria’s economic resilience.
Speaking during a courtesy visit to the Dangote Group’s regional office in Abuja, Chairman of the Sharada-Challawa branch of the Manufacturers Association of Nigeria (MAN), Muhammad Nura Madugu, said the policy aligns with the aspirations of local manufacturers who seek to leverage opportunities created by domestic refining and value addition in the oil and gas sector.
Mr. Madugu, who led a MAN delegation to the Dangote office following the 2025 MAN Product Exhibition in Kano, noted that the tariff would encourage greater investment in local production and help reduce the country’s dependence on imported fuel.
According to him “Local manufacturers will continue to align with progressive government policies designed to stimulate industrial development, promote local content, and position Nigerian companies to compete effectively on the global stage.”
He noted that the Dangote Refinery presents immense opportunities for manufacturers to tap into the numerous derivatives of crude oil, including petrol, diesel, kerosene, jet fuel, LPG, naphtha, bitumen, lubricating oils, and petrochemical feedstocks such as ethylene and propylene. These materials, he noted, are vital for producing plastics, detergents, synthetic fibres, and other industrial goods.
Mr. Madugu commended Aliko Dangote, President of Dangote Group, for his “rare faith and resilience in advancing the Nigerian project,” stressing that the refinery’s success represents a milestone in the nation’s quest for energy independence and industrial growth.
During the visit, the MAN delegation presented Awards of Excellence to Mr. Dangote and Mrs. Fatima Wali-Abdurrahman, Special Adviser on Strategic Relations and Projects to the Dangote Group President.
Responding, Mrs. Wali-Abdurrahman expressed appreciation on behalf of the company, saying Dangote Industries remains committed to supporting government policies that promote local production and job creation.
“We believe that strong linkages between the refinery and local manufacturers will stimulate the growth of ancillary industries, create new value chains, and enhance our collective capacity to meet both domestic and export demands,” she said.
The Dangote Refinery, which began operations in 2024, currently has an installed capacity of 650,000 barrels per day and is reportedly loading 45 million liters of petrol and 25 million liters of diesel daily, according to company spokesman Anthony Chiejina.
Chiejina said the refinery’s production capacity exceeds Nigeria’s demand, adding “This significant production capacity not only guarantees local supply but also enhances energy security and reduces dependence on imports.”
In a related development, Muhammad Bello Isyaku Umar, Chairman of MAN’s Kano-Jigawa Branch, also praised the Federal Government’s policy, saying it would reduce importation, stabilize the naira, and attract new investments in local refining.
“The new policy will encourage more investment in the oil sector, especially in refining petroleum, and will increase government revenue,” he said. “If there is not enough local supply, the policy can lead to higher fuel prices, but in the long run, it will strengthen the economy.”
President Bola Ahmed Tinubu had earlier approved the 15 per cent import duty on petrol and diesel, which his Special Adviser on Media and Public Communications, Sunday Dare, described as “a bridge, not a burden,” aimed at reshaping Nigeria’s petroleum landscape and securing long-term economic stability.
“For years, the nation has depended heavily on imported fuel despite being a leading crude oil producer,” Dare wrote. “This new policy is designed to reverse that trend by encouraging local refining, boosting domestic capacity, and ensuring that Nigeria’s oil wealth translates directly into national prosperity.”
With the Dangote Refinery’s planned expansion to 1.4 million barrels per day and the expected creation of about 65,000 jobs, industry stakeholders believe the combination of government policy and private