Nigeria’s quest for a robust industrialisation capable of powering enduring growth and creating job opportunities hinges on sheltering local industries from unfair competition and other external vulnerabilities businesses face due to indiscriminate trade liberalisation, according to the Centre for the Promotion of Private Enterprise.
The private sector advocacy organisation is upbeat that President Bola Tinubu’s approval of a 15 per cent import duty on refined petroleum products is a positive move significant to Nigeria’s industrial growth and energy security.
|
|
“Nigeria’s journey to sustainable industrialisation must be anchored on strategic, time-bound protectionism, not indiscriminate liberalisation,” CPPE said in a Sunday policy brief issued by its CEO, Muda Yusuf.
“No country has industrialised through unrestrained exposure to imports,” it added.
|
|
|
|---|
The Nigerian Government announced the introduction of the import charge on Thursday, aiming to stimulate domestic refining and reduce dependence on imports with the policy.
Much as concerns are emerging that the measure could spur an increase in fuel prices, CPPE said it is “a progressive and corrective policy” that may help revive local refineries, conserve foreign exchange and create employment opportunities.
It said sectors that received measured protection over the years, such as cement, flour, and beverages, have recorded major growth and are now embracing value addition, while industries that have been left open to unrestricted imports are suffering collapse.
Stay Ahead with Premium Times
Follow us on Google News and never miss breaking stories, investigations, and in-depth reporting.
Add as a preferred source on Google
Exposing local manufacturers to global competition without tackling elevated energy costs, infrastructure deficit and low access to finance, CPPE stated, puts them at a disadvantage.
It views the duty as modest relative to tariffs in other sectors like agro-processing and flour milling, where protection is boosting backward integration and domestic investment.
Recommendations
The organisation urged the government to sustain the policy and strengthen it with wider measures to ensure it produces long-lasting results.
It recommended fiscal incentives, low-cost financing, reliable energy supply and improved infrastructure to help manufacturers cut expenditure and expand output.
The group also urged the government to make protection time-bound and performance-based, with clear standards for transitioning to export competitiveness once industries attain stability.
“The 15 per cent import duty on refined petroleum products is a forward-looking policy that can transform Nigeria’s industrial landscape if reinforced with complementary reforms,” CPPE said.
It added that protectionism, when pursued with discipline, is not about closing borders but about “building domestic strength for global competitiveness.”
Discover more from Premium Times Nigeria
Subscribe to get the latest posts sent to your email.
More News
