₦airaland Forum

The recent government memo proposes a 15% tariff on fuel imports, claiming it will deliver "national energy security" and "market stabilisation."

Let's examine these generous fictions.

"This Will Reinforce Energy Security"
Apparently, energy security now means making fuel scarce and expensive. The Dangote Refinery produces far below Nigeria's 66-million-litre daily demand, yet the solution is to tax the imports that actually keep vehicles running? Brilliant. Nothing says "security" like eliminating your backup supply before your primary source works.

"Imports Undercut Local Production"
Translation: our $20 billion refinery can't compete with imported fuel, so instead of asking why, let's just ban the competition. Global refineries face import competition daily without requiring their governments to kneecap rivals. But Nigerian consumers should pay premium prices to protect a facility that promised efficiency but delivered excuses.

"The Tariff Will Improve Affordability"
This might be the memo's boldest lie. A 15% duty adds ₦95–₦100 per litre, which becomes ₦140–₦165 after transport, storage, and margins. Food costs rise. Transport fares jump. Businesses close.
But sure, let's call economic strangulation "affordability." Nigerians have already survived subsidy removal and currency collapse; why not add extortion to the list?

"This Serves Public Interest"
Twenty marketers sell Dangote fuel ₦100–₦120 above import prices—no competition, no consequence. The same refinery demanding protection from imports quietly imports its own blending components. The hypocrisy is remarkable: imports are dangerous unless we're doing the importing.
This isn't public interest. It's a protection racket with legislative approval.


The Bottom Line
Nigeria is being asked to accept monopoly pricing, supply uncertainty, and economic hardship, all to protect a refinery that can't deliver on its promises. True reform would allow competition to expose inefficiency, not reward it with tariffs.

If this passes, remember: it wasn't policy. It was a heist, and the government held the door open.

Rotimi Matthew, a public policy analyst, wrote in from Abuja.

Qtsnow:
https://www.vanguardngr.com/2025/10/re-15-tariff-why-the-federal-government-memo-gets-everything-wrong/

Qtsnow:
https://www.vanguardngr.com/2025/10/re-15-tariff-why-the-federal-government-memo-gets-everything-wrong/

givedemwotowoto:
By January when people start paying taxes, they’ll see the reality of living in a country where you pay taxes like those who live abroad, but get nothing in return.

VOsimhen144:
I feel this a Good news for the economy, bad news for fuel importers.

We have Dangote refinery which has even expanded to become the world's largest refinery. Why are we still importing fuel when we have local refinery ? BUA is almost completing his own too.. this will make our Naira stronger against the dollars while we also earn more of foreign exchange by exporting the products abroad which Dangote has already started exporting to the United States.

The fuel importers can also avoid this fuel import Tax by building local refinery here to compete against Dangote thereby creating a competitive market environment which will eventually crash the price of the products totally

Tayorshd87:
else I will lead the protest to Abuja 😡😡

COMPAQ:
The person to demand something in return for your taxes is you. If Sowore requests 1mln man march to NASS for good governance, I'm sure you'll use that Saturday to be watchhing Netflix.

Nigeria's are not willing to do what it takes.

Mind you i'm not advocating for riots or looting o. Just 1,000,000 people going to occupy NASS and Aso Rock and demanding for good governance, reduction in estacode, reduction is wasteful spending, reduction in corruption, reduction in using our money to buy Landcruisers etc will shake the establishment to their core. Do you know what it means for 1mln people to gather? Even 100k!!

Tayorshd87:
enough of reading long epistle always abeg we need a shortfal of PMS price in the country and pay less tax 😡

Even as at that we need a positive change if the tax commences or else I will lead the protest to Abuja 😡😡

I love Tinubu so much but if this tax can work with changes then he is the best .
But if tax works without change in the environment society or anything hmmmm also rock go hot oo 😢

Dogalmighty17:
You talk as if majority of your brain has leaked out of your ears. The CBN under Emiefele sold dollars at a very cheap rate to Dangote. The NNPC too reportedly provided funds though less than 5% of the total cost of the project.

Will government be willing to sell dollars cheaply across board to anyone willing to build a refinery? Or is this a package only Dangote enjoyed?

A government that cannot account for the billions of dollars it borrowed to fix Kaduna and Port Harcourt refineries has no business demanding Nigerians pay 15% on imported fuel. That is wickedness.

A bag of cement costs 3500 in China but yet that same bag costs 9500 here in Nigeria. What possibly justifies this? And the government wants to put us at the mercy of this company?

Dogalmighty17:
No one forced him to go and build refinery. If his production cost cannot fall below imported fuels then why should we have to pay for that? Where is the free market economy this government claims to pursue when it is putting in place policies to stifle competition?
It is madness that a refinery accesses crude locally, refines locally but its products are more expensive than imported varieties. The lies that imported fuel is of lesser quality is just that, cheap lies.

I understand anyway. He is a business man and will always want to do what is for the best of his business. But I'll leave you with something to ponder.

Compare the cost of a bag of cement in China to a bag of cement in Nigeria.

Dogalmighty17:
No one forced him to go and build refinery. If his production cost cannot fall below imported fuels then why should we have to pay for that? Where is the free market economy this government claims to pursue when it is putting in place policies to stifle competition?
It is madness that a refinery accesses crude locally, refines locally but its products are more expensive than imported varieties. The lies that imported fuel is of lesser quality is just that, cheap lies.

I understand anyway. He is a business man and will always want to do what is for the best of his business. But I'll leave you with something to ponder.

Compare the cost of a bag of cement in China to a bag of cement in Nigeria.

Dogalmighty17:
You talk as if majority of your brain has leaked out of your ears. The CBN under Emiefele sold dollars at a very cheap rate to Dangote. The NNPC too reportedly provided funds though less than 5% of the total cost of the project.

Will government be willing to sell dollars cheaply across board to anyone willing to build a refinery? Or is this a package only Dangote enjoyed?

A government that cannot account for the billions of dollars it borrowed to fix Kaduna and Port Harcourt refineries has no business demanding Nigerians pay 15% on imported fuel. That is wickedness.

A bag of cement costs 3500 in China but yet that same bag costs 9500 here in Nigeria. What possibly justifies this? And the government wants to put us at the mercy of this company?

Dogalmighty17:
No one forced him to go and build refinery. If his production cost cannot fall below imported fuels then why should we have to pay for that? Where is the free market economy this government claims to pursue when it is putting in place policies to stifle competition?
It is madness that a refinery accesses crude locally, refines locally but its products are more expensive than imported varieties. The lies that imported fuel is of lesser quality is just that, cheap lies.

I understand anyway. He is a business man and will always want to do what is for the best of his business. But I'll leave you with something to ponder.

Compare the cost of a bag of cement in China to a bag of cement in Nigeria.

qanda:
Discouraging fuel imports is a good development. It will give investors confidence to build refineries. BUA and others who are already building a Refinery will try to complete their project ASAP.

Nigerians will benefit from the availability of multiple refining facilities in Nigeria.

VOsimhen144:
I feel this a Good news for the economy, bad news for fuel importers.

We have Dangote refinery which has even expanded to become the world's largest refinery. Why are we still importing fuel when we have local refinery ? BUA is almost completing his own too.. this will make our Naira stronger against the dollars while we also earn more of foreign exchange by exporting the products abroad which Dangote has already started exporting to the United States.

The fuel importers can also avoid this fuel import Tax by building local refinery here to compete against Dangote thereby creating a competitive market environment which will eventually crash the price of the products totally

VOsimhen144:
I feel this a Good news for the economy, bad news for fuel importers.

We have Dangote refinery which has even expanded to become the world's largest refinery. Why are we still importing fuel when we have local refinery ? BUA is almost completing his own too.. this will make our Naira stronger against the dollars while we also earn more of foreign exchange by exporting the products abroad which Dangote has already started exporting to the United States.

The fuel importers can also avoid this fuel import Tax by building local refinery here to compete against Dangote thereby creating a competitive market environment which will eventually crash the price of the products totally

Qtsnow:
https://www.vanguardngr.com/2025/10/re-15-tariff-why-the-federal-government-memo-gets-everything-wrong/