The Nigerian oil and gas sector is facing renewed turbulence as President Bola Ahmed Tinubu's administration implements a controversial 15% import tax on petroleum products. This new policy has triggered immediate backlash from petrol marketers across the country who warn of devastating consequences for consumers and the broader economy.
Marketers Sound Alarm Over Rising Costs
According to industry leaders, the additional tax burden comes at the worst possible time for Nigeria's energy sector. Chief Chinedu Okonkwo, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), expressed grave concerns about the policy's timing and potential impact.
"This 15% import tax will inevitably lead to higher pump prices for petrol," Okonkwo stated. "We're already grappling with numerous challenges, and this additional cost will be passed on to consumers who are already struggling with economic hardships."
Diesel Prices Compound Energy Woes
The situation is further complicated by persistently high diesel prices, which remain between ₦1,250 to ₦1,350 per litre in major cities including Lagos, Abuja, and Port Harcourt. Diesel serves as the primary fuel for transportation and power generation for many businesses, making its cost a critical factor in Nigeria's economic stability.
Industry analysts note that the combination of increased petrol import taxes and elevated diesel costs creates a perfect storm for inflation across all sectors of the economy.
Government's Rationale Meets Industry Skepticism
While the government has defended the tax as necessary for revenue generation and infrastructure development, petroleum marketers remain unconvinced. They argue that the policy will disproportionately affect ordinary Nigerians and small businesses already facing financial pressure.
"We understand the government's need for revenue, but this approach will hurt the very people we're trying to help," commented a senior executive from the Major Oil Marketers Association of Nigeria (MOMAN), who requested anonymity.
Potential Consequences for Nigerian Economy
- Immediate increase in petrol pump prices
- Higher transportation costs affecting goods and services
- Increased operational expenses for businesses
- Potential acceleration of inflation rates
- Reduced purchasing power for consumers
The petroleum marketers have called for urgent dialogue with the federal government to reconsider the policy's implementation timeline and explore alternative revenue sources that won't exacerbate the current economic challenges facing millions of Nigerians.
