LAGOS, Nigeria (FN) — Nigerian billionaire Femi Otedola has endorsed President Bola Tinubu’s decision to impose a 15% import tariff on petrol and diesel, describing the move as a critical step toward protecting domestic refining investments and stabilizing the country’s energy market.
In a statement posted Monday on X, formerly Twitter, Otedola said the tariff would shield Nigeria’s industrial sector from being undermined by cheaper foreign fuel, which he argued has historically crippled local production across multiple industries.
“I commend President Bola Ahmed Tinubu for his bold and decisive step,” Otedola wrote. “This policy safeguards local industries that have invested heavily in refining and energy infrastructure.”
The tariff, approved in a directive dated October 21 and made public on October 30, applies an ad-valorem duty on the cost, insurance, and freight value of imported petrol and diesel. It was communicated to the Federal Inland Revenue Service and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
According to the presidency, the measure is part of a broader “market-responsive import tariff framework” designed to protect local refineries and reduce Nigeria’s reliance on imported fuel. Officials acknowledged the policy could lead to higher pump prices but emphasized its long-term economic benefits.
Otedola warned against repeating past mistakes, citing how unchecked imports devastated Nigeria’s textile, automotive, and manufacturing sectors. “We cannot afford to allow history to repeat itself in the energy sector,” he said. “Nigeria now has the capacity to meet its fuel needs locally.”
The businessman added that the tariff would provide clarity for investors and help establish a predictable pricing regime, which he said is essential for controlling inflation and fostering economic stability.
Sunday Dare, Special Adviser to the President on Media and Public Communications, defended the policy on his official X account, calling it “a bridge, not a burden.” He said the tariff would accelerate Nigeria’s path to energy self-sufficiency and transform the petroleum landscape.
Otedola concluded by praising Tinubu’s economic vision, saying the president’s focus on empowering local producers and promoting value addition aligns with Nigeria’s ambition to become a $1 trillion economy. “This is the kind of leadership required to drive real transformation,” he said.
The tariff policy has sparked debate among economists and industry stakeholders, with some warning of short-term price shocks while others see it as a necessary intervention to protect domestic capacity and attract long-term investment.
