Nigeria’s economy is hemorrhaging, and the culprit might surprise you: it’s our relentless reliance on imported petrol. But here’s where it gets controversial—while many see this as a necessary evil, the Centre for the Promotion of Private Enterprise (CPPE) argues it’s a self-inflicted wound, draining foreign reserves and destabilizing our finances. So, what’s their solution? A bold 15% import duty on refined petroleum products, a move they claim could be the game-changer Nigeria needs.
In a detailed policy brief, CPPE CEO Dr. Muda Yusuf paints a stark picture: decades of importing refined fuel have hollowed out Nigeria’s productive capacity, stifled competitiveness, and left us vulnerable to global market whims. And this is the part most people miss—it’s not just about the money; it’s about building an economy that can stand on its own two feet. CPPE insists that industrialization isn’t achieved through unchecked trade liberalization but through strategic protectionism—a concept that’s sure to spark debate.
Here’s the bold claim: CPPE argues that no country has industrialized without shielding its emerging industries from overwhelming foreign competition. They point to success stories like China, South Korea, and Malaysia, which used protectionist policies to nurture their infant industries before opening up to the world. Even the United States, a champion of free markets, has recently embraced subsidies and local manufacturing incentives to bolster its industrial base. So, why can’t Nigeria do the same?
The 15% tariff, CPPE says, is a step in the right direction. It’s not about isolation; it’s about creating a level playing field for local refineries like Dangote and NNPCL to thrive. Think of it as a temporary crutch to help our industries walk before they run. But it’s not just about oil—CPPE highlights how sectors like flour milling, agro-processing, and pharmaceuticals have flourished under similar protective measures, proving that this approach can work.
But here’s the catch: protectionism alone isn’t enough. CPPE warns against what they call a “policy-induced disadvantage,” where local manufacturers are thrown into the global arena without addressing high energy costs, poor infrastructure, and limited financing. To make this work, Nigeria needs a holistic strategy: affordable loans, reliable energy, better infrastructure, and streamlined regulations. Protection, they stress, must be strategic, time-bound, and results-driven.
So, where does this leave us? CPPE urges the government to stick with the 15% duty and expand similar support to sectors like steel, petrochemicals, and agro-processing. The goal? Economic sovereignty, not isolation. But here’s the question that’ll get everyone talking: Is disciplined protectionism the key to Nigeria’s industrial future, or are we risking too much by shielding ourselves from global competition? Let’s hear your thoughts in the comments—agree or disagree, this is a conversation Nigeria needs to have.
