Industrialists from Northern Nigeria have welcomed the federal government’s decision to impose a 15 per cent import duty on petroleum products, noting that the measure is a strategic move aimed at stimulating local production, enhancing value addition within the oil and gas sector, and creating a more competitive environment for Nigerian manufacturers.
The chairman of the Sharada-Challawa branch of the Manufacturers Association of Nigeria (MAN) in Kano, Muhammad Nura Madugu, who , spoke Tuesday during the Association’s visit to the Dangote Group’s regional office in Abuja.
He said local manufacturers will continue to align with progressive government policies designed to stimulate industrial development, promote local content, and position Nigerian companies to compete effectively on the global stage.
Mr Madugu explained that his members adopt a balanced approach in assessing government policies, weighing their potential benefits and challenges both to member industries and to the nation’s economic development.
According to him, numerous business opportunities are arising from the various derivatives of crude oil refining by the company, adding that his members are eager to leverage the vast potential created by the Dangote Refinery.
Mr Madugu said some of the key derivatives obtained from crude oil refining include petrol, diesel, kerosene, jet fuel, and liquefied petroleum gas (LPG).
Others, he said, include naphtha, bitumen, lubricating oils, and fuel oil, as well as important petrochemical feedstocks such as linear alkylbenzene (LAB), ethylene, propylene, and butadiene, all of which serve as raw materials for producing plastics, detergents, synthetic fibres, and other industrial goods.
The courtesy visit followed the 2025 MAN Product Exhibition in Kano, an annual event sponsored by Dangote Industries Limited.
He lauded Dangote Group President, Aliko Dangote, for his rare faith and resilience in advancing the Nigerian project.
The MAN team also presented Awards of Excellence to Mr Aliko Dangote and to the Special Adviser on Strategic Relations and Projects to the Dangote Group President, Mrs Fatima Wali-Abdurrahman.
In her reaction, Mrs Wali-Abdurrahman expressed the company’s appreciation, adding that Mr Dangote is passionate about supporting the government in growing and developing the Nigerian economy.
She stated that the company remains committed to promoting locally made products and driving job creation nationwide.
According to her: “We believe that strong linkages between the refinery and local manufacturers will stimulate the growth of ancillary industries, create new value chains, and enhance our collective capacity to meet both domestic and export demands.”
Mr Dangote recently disclosed plans to expand the refinery’s capacity to 1.4 million barrels per day (bpd), which is projected to generate approximately 65,000 jobs for Nigerians.
Accompanying Mr Madugu on the visit to the Dangote Group’s regional office were the Vice Chairman (Bompai), Auwal Muhammad; the executive secretary, Mr Ibrahim Garba; and Mr Sani Shuaibu Sagagi, an official of the Association.
In a similar reaction, Muhammad Bello Isyaku Umar, Chairman of the Manufacturers Association of Nigeria (MAN), Kano-Jigawa Branch, lauded the introduction of the new import duty on petrol and diesel, describing it as a policy capable of placing the nation’s economy on a stronger and more sustainable footing.
He said:” It will reduce the country’s volume of importation and high demand for Foreign Exchange, and this will improve the value of our currency.”
Mr Umar added, “The new policy will encourage more investment in the oil sector, especially in refining petroleum. It will also increase government revenue. If there is not enough local supply, the policy can lead to higher fuel prices, an increase in transportation costs, and higher prices for goods.”
President Bola Tinubu had approved a 15 per cent import tariff on petrol and diesel, describing the policy as a strategic step to stimulate local refining and strengthen Nigeria’s energy independence.
According to a statement by the Special Adviser to the President on Media and Public Communications, Sunday Dare, on his official X handle, the new policy was “a bridge, not a burden”, aimed at transforming Nigeria’s petroleum landscape and securing long-term economic stability.
“It’s no longer news that President Bola Ahmed Tinubu has approved a 15 per cent import duty on petrol and diesel, a bold and strategic move aimed at reshaping Nigeria’s energy landscape,” Dare wrote.
He noted that for years, Nigeria had depended on imported fuel despite being one of the world’s leading crude oil producers, a situation that drained foreign exchange, hindered job creation, and stifled local refining investments.
“For years, the nation has depended heavily on imported fuel despite being a leading crude oil producer, draining foreign exchange and exporting jobs that should have been created at home. This new policy is designed to reverse that trend by encouraging local refining, boosting domestic capacity, and ensuring that Nigeria’s oil wealth translates directly into national prosperity,” the statement added.
The Dangote Refinery, which is scheduled to commence operations in 2024, has emerged as a dominant refining giant in Nigeria’s downstream sector.
With an installed capacity of 650,000 barrels per day, the facility said it can meet Nigeria’s fuel demand.
Spokesman of the Dangote Group, Anthony Chiejina, had assured that the Dangote Refinery can meet Nigeria’s fuel demand.
The refinery is now “loading 45 million litres of PMS and 25 million litres of diesel daily, which exceeds Nigeria’s demand,” Chiejina said in a statement.
He said: “This significant production capacity not only guarantees local supply but also enhances energy security and reduces dependence on imports.”
Chiejina added, “We are working collaboratively with regulatory agencies and distribution partners to guarantee efficient nationwide delivery. Dangote remains steadfast in its commitment to meeting the energy needs of Nigerians. This significant production capacity not only guarantees local supply but also enhances energy security and reduces dependence on imports.”
