Dike Onwuamaeze

The Lagos Chamber of Commerce and Industry (LCCI) has called on the federal government to postpone the implementation of the 15 per cent import tax on petrol and diesel.

The LCCI also urged the government to seek a balanced and measured strategic rollout that could ensure a sustainable economic impact.

The Director General of LCCI, Dr. Chinyere Almona, stated yesterday that, “we recommend that the implementation of this tax policy be postponed and that, during the transition period, the government demonstrate its commitment through action by empowering local refiners through an efficient crude-for-Naira supply chain that ensures sufficient crude.

“With this, refiners can boost their refining capacity with a stable supply of crude and adequately meet domestic demand at competitive rates.

“At this point, the imposition of an import tax will directly discourage importation and boost demand for the locally refined products.

“With zero importation achieved, the benefits will be seen in the creation of jobs, the conservation of FOREX, a strengthened exchange rate, and increased revenue for the government.”

Almona said while this policy direction aligns with the nation’s long-term objective of achieving energy self-sufficiency and strengthening the Naira, the chamber emphasides the importance of a measured, strategic rollout to ensure a sustainable economic impact.

 She added: “Nigeria is already experiencing cost-of-living pressures, supply-chain, and inflation challenges.

“The business community will be sensitive to further cost shocks. Increased fuel costs affect transportation, supply chains, agriculture, logistics, and manufacturing – this, in turn, disproportionately impacts SMEs and trading firms.

“The chamber recognises that discouraging fuel importation is a necessary step towards achieving domestic energy security, stimulating investment in local refineries, and deepening the downstream petroleum value chain.

“However, the chamber expresses concern about the current adequacy of local refining capacity 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.”

The chamber, therefore, calls on the federal government to prioritise the full operationalisation and optimisation of local refineries, both public and private, including modular refineries and the recently revitalised major refining facilities.

It stated that a comprehensive framework for crude oil supply to these refineries in Naira rather than foreign exchange will significantly enhance cost efficiency, stabilise production, and strengthen the local value chain.

“Our interest lies in a diversified downstream sector where multiple refineries, modular plants, and logistics firms thrive.

“A level playing field and transparency are key,” Almona said.

She added: “Furthermore, the LCCI urges the government to resolve outstanding labour union issues and create an enabling environment that fosters industrial harmony and private sector confidence.

“Ensuring clarity, consistency, and transparency in the implementation of the new tax regime will be crucial in preventing market distortions and sustaining investor trust.”

 She said that while the reform is justified from an industrial policy standpoint, its success would depend on practical implementation, robust safeguards, and parallel reforms to alleviate cost burdens on businesses and consumers.

The LCCI also reaffirmed its commitment to engaging constructively with the government and the entire value chain to ensure the realisation the intent behind this policy such as more domestic refining, more jobs, more Nigerian content, and business costs that remain affordable, competitive, and growth-oriented.

It advised the government to address the inhibiting factors against local production and refining before imposing this levy to discourage imports and support local production.

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