The Lagos Chamber of Commerce and Industry, LCCI, has urged the Federal Government to adopt a measured and strategic rollout of the newly announced 15 per cent petroleum import tax to ensure it delivers long-term economic benefits without worsening inflation or disrupting supply.
The Director-General of the LCCI, Dr. Chinyere Almona, made this call in a statement on Monday in Lagos, following the government’s decision to impose a 15% import tax on petrol and diesel. The move, according to authorities, is aimed at reducing import dependence and boosting domestic refining capacity.
Almona acknowledged that the policy aligns with Nigeria’s long-term goals of energy self-sufficiency and strengthening the naira, but warned that its implementation must be carefully planned.
“Nigeria is already facing cost-of-living pressures, supply-chain constraints, and inflation challenges. The business community will be sensitive to further cost shocks,” she said.
She explained that while discouraging fuel importation is necessary to achieve energy security and stimulate investment in local refining, the country’s refining capacity remains inadequate to meet national demand.
“A premature restriction on imports, without sufficient domestic production, could lead to supply shortages, higher pump prices, and inflationary pressures across critical sectors,” Almona cautioned.
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The LCCI boss advised the government to prioritise the full operationalisation of public and private refineries, including modular plants and recently revitalised major refining facilities.
She also proposed that the crude oil supply to local refineries be denominated in naira, not foreign exchange, to improve cost efficiency and strengthen the domestic value chain.
“Ensuring clarity, consistency, and transparency in the tax rollout will prevent market distortions and sustain investor confidence,” she added.
While supporting the reform’s intent, Almona emphasised that its success depends on practical implementation, robust safeguards, and reforms to cushion the cost impact on businesses and consumers.
She further recommended postponing the implementation of the tax policy until local refineries can meet domestic demand, adding that the government must first demonstrate its commitment by supporting refiners through a reliable crude-for-naira supply framework.
“With a stable crude supply, refiners can meet national demand competitively. At that point, the import tax would effectively discourage importation and drive demand for locally refined products,” Almona concluded.
