…says 15% petroleum import duty a step toward industrial revival
The Centre for the Promotion of Private Enterprise (CPPE) has called on the federal government to sustain and deepen protectionist industrial policies to accelerate Nigeria’s path to industrialisation, job creation, and economic self-reliance.
In a policy brief signed by Muda Yusuf, its Director and Chief Executive Officer, the Centre described the recent 15 percent import duty on refined petroleum products as a progressive and corrective measure that could catalyze industrial revival, conserve foreign exchange, and restore confidence in domestic production.
According to Yusuf, history and global experience show that no country has achieved meaningful industrialisation through indiscriminate trade liberalisation.
He emphasised that Nigeria must adopt a framework of strategic protectionism, a calibrated policy approach that shields emerging industries from unfair competition while enabling them to build capacity and competitiveness.
“The 15 percent import duty on refined petroleum products is a positive policy proposition. When complemented with broader industrial support measures, it can strengthen our refining sector, conserve foreign exchange, create jobs, and enhance economic resilience,” Yusuf stated.
He noted that sectors that benefited from structured protection, such as cement, flour milling, and beverages have witnessed significant domestic growth, backward integration, and value addition.
The oil and gas industry, he said, should now receive similar policy attention to rebuild local refining capacity and reduce Nigeria’s dependence on imported petroleum products.
The CPPE chief cited global precedents, pointing to the experiences of China, India, South Korea, and Malaysia, which protected infant industries during their industrial take-off phases before gradually opening up to global competition.
Even advanced economies like the United States, he added, are now embracing protectionist measures to secure their manufacturing base.
Yusuf argued that exposing Nigerian manufacturers to unrestrained foreign competition without addressing structural challenges, such as high energy costs, poor infrastructure, limited access to finance, and inefficient logistics, creates a policy-induced disadvantage.
“Genuine competition requires comparable production conditions, not a contest between subsidised imports and under-supported local producers,” he said.
He added that protectionist measures, when properly designed, deliver broad developmental payoffs including industrial growth, job creation, technology transfer, foreign exchange conservation, and macroeconomic stability.
To ensure sustainable benefits, CPPE urged the government to complement tariff measures with access to low-cost financing, reliable power supply, targeted fiscal incentives, and streamlined regulations. It also recommended periodic monitoring to ensure that protection leads to improved productivity, innovation, and price moderation.
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Yusuf stressed that strategic protectionism does not imply isolationism or economic nationalism but rather a pragmatic route to competitiveness and long-term prosperity.
“Protectionism, when pragmatic and disciplined, is not about closing borders. It is about building domestic strength for global competitiveness. The goal is not to shut out the world, but to empower Nigeria to engage it from a position of strength,” he said.
The CPPE reiterated its call for a balanced industrial policy framework that encourages both local and foreign investors to produce within Nigeria, thereby laying the foundation for self-sufficiency and export readiness in key sectors over the next decade.
