Abuja: Industrialists from Northern Nigeria have welcomed the Federal Government’s decision to impose a 15 per cent import duty on petroleum products. They believe this measure will stimulate local production, enhance value addition within the oil and gas sector, and create a more competitive environment for Nigerian manufacturers.
According to News Agency of Nigeria, Muhammad Madugu, Chairman of the Sharada-Challawa branch of the Manufacturers Association of Nigeria (MAN) in Kano, disclosed this during the Association’s visit to the Dangote Group’s regional office in Abuja. Madugu emphasized that local manufacturers will continue to support progressive government policies designed to stimulate industrial development, promote local content, and position Nigerian companies to compete effectively on the global stage.
Madugu explained that his members adopt a balanced approach in assessing government policies, weighing their potential benefits and challenges to both member industries and national economic deve
lopment. He pointed out numerous business opportunities arising from the various derivatives of crude oil refining by the company, and expressed eagerness among his members to leverage the vast potential created by the Dangote Refinery.
During the visit, Madugu highlighted key derivatives obtained from crude oil refining, including petrol, diesel, kerosene, jet fuel, and liquefied petroleum gas (LPG), as well as naphtha, bitumen, lubricating oils, and fuel oil. These derivatives serve as raw materials for the production of industrial goods such as plastics, detergents, and synthetic fibres.
The courtesy visit followed the 2025 MAN Product Exhibition in Kano, an annual event sponsored by Dangote Industries Limited. Madugu praised Dangote Group President, Aliko Dangote, for his commitment to advancing the Nigerian economy. The MAN team also presented Awards of Excellence to Dangote and to the Special Adviser on Strategic Relations and Projects to the Dangote Group President, Mrs. Fatima Wali-Abdurrahman.
In
response, Wali-Abdurrahman expressed appreciation, noting Mr. Dangote’s passion for supporting the government in growing and developing the Nigerian economy. She affirmed the company’s commitment to promoting locally made products and driving job creation across the country. She emphasized the belief that strong linkages between the refinery and local manufacturers would stimulate the growth of ancillary industries and create new value chains.
Mr. Dangote recently disclosed plans to expand the refinery’s capacity to 1.4 million barrels per day (bpd), projected to generate approximately 65,000 jobs for Nigerians. Accompanying Madugu on the visit were Vice Chairman (Bompai), Mr. Auwal Muhammad; Executive Secretary, Mr. Ibrahim Garba; and Mr. Sani Sagagi, an official of the Association.
In a similar vein, Chairman of the Manufacturers Association of Nigeria (MAN), Kano-Jigawa Branch, Muhammad Umar, praised the introduction of the new import duty on petrol and diesel. He described it as a policy capable of stre
ngthening the nation’s economy by reducing import volumes and high demand for Foreign Exchange, thereby improving the value of the currency. Umar noted that the policy would encourage more investment in the oil sector, increase government revenue, and potentially lead to higher fuel prices if local supply is insufficient.
President Bola Tinubu approved the 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. A statement by the Special Adviser to the President on Media and Public Communications, Sunday Dare, referred to the new policy as ‘a bridge, not a burden,’ aimed at transforming Nigeria’s petroleum landscape.
The Dangote Refinery, which commenced operations in 2024, has emerged as a dominant player in Nigeria’s downstream sector. With an installed capacity of 650,000 barrels per day, it is positioned to meet Nigeria’s fuel demand. Anthony Chiejina, spokesman of the Dangote Group, assured that
the refinery’s production capacity not only guarantees local supply but also enhances energy security and reduces dependence on imports.