The Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA) has voiced its full support for the Nigerian federal government's decision to impose a 15 percent ad-valorem import duty on petrol and diesel, seeing it as a critical policy to strengthen the Naira and boost domestic industrial growth.
Odeiga Jideonwo, President of ECCIMA, stated that the chamber views the new import duty, approved by President Bola Tinubu on October 21, as a step in the right direction. He argued that the excessive importation of goods that can be locally produced is the primary factor weakening the value of the Naira.
The Import-Dependency Challenge
Jideonwo stressed the chamber's consistent position that the Naira cannot appreciate when more than 80 percent of Nigeria's needs remain import-dependent.
- He stated that the excessive importation of finished goods continues to weaken the Naira, especially when those goods can be manufactured domestically.
- The ECCIMA president asserted that imposing higher tariffs on imported products that can be manufactured locally will effectively protect and revitalize local industries, create employment opportunities, and grow the economy.
- He tied the nation's economic decline directly to the practice of importing refined petroleum products, which began in the 1990s, noting that the inability of the Nigerian National Petroleum Company (NNPC) Limited to revive state-owned refineries and the indiscriminate issuance of importation licenses have worsened the country's economic challenges.
Jideonwo cited global examples, mentioning that countries like the United States and China uphold strict policies that discourage importation of domestically-producible goods, thereby promoting indigenous industries, meeting local demand, and improving the balance of trade. He concluded that any government aiming for real change must adopt policies that support domestic industries, similar to those seen in the strategies of leaders like President Donald Trump.
Commending Dangote and Calling for More Local Refineries
ECCIMA highly commended the Dangote Group Chairman, Alhaji Aliko Dangote, for his "visionary and determined efforts" to restore Nigeria’s reputation in refined petroleum production through the Dangote Petroleum Refinery.
- The chamber noted that the Dangote Refinery is already meeting domestic needs and earning foreign exchange for the country, emphasizing that more investments of this nature are crucial to saving and strengthening the Nigerian economy.
- Regarding concerns about whether the refinery can meet full domestic demand if high import taxes discourage importation, ECCIMA expressed optimism, pointing to the planned expansion of the refinery's capacity from 650,000 barrels per day (bpd) to 1.4 million bpd.
The ECCIMA president issued a call to action, urging the Federal Government to issue more licenses to indigenous companies for establishing refineries in Nigeria. Jideonwo advocated for the government to:
- Actively support players in the oil sector who can transform Nigeria from a net exporter of crude oil to a net exporter of refined petroleum products.
- Remove bureaucratic obstacles that impede local investors from securing refinery licenses.
Jideonwo concluded that such reforms would encourage more investors, enhance competition, and ensure a sufficient supply of products for both domestic and export markets, stating that Nigeria can indeed become a global leader and the largest exporter of refined petroleum products if this policy is properly implemented. ECCIMA affirmed its support for any government policy that safeguards and promotes private sector initiatives aimed at reviving local refining.