– Applauds FG for policy shift
Mkpoikana Udoma
Port Harcourt — The Petroleum Refineries Owners Association of Nigeria, PETROAN, has commended the Federal Government’s decision to ban the importation of foreign goods that are locally produced, calling it a bold move to promote domestic industry.
However, the association warned that without careful implementation, the policy could trigger fuel shortages, price hikes, and broader economic disruptions, particularly in the petroleum sector.
The Federal Executive Council presided over by President Bola Tinubu, yesterday approved a new policy framework tagged “Renewed Hope Nigeria First Policy,” aimed at strengthening Nigeria’s domestic economy, prioritising local industry, and boosting the country’s industrial transformation.
Specifically, the policy focuses on accelerating industrialization, promoting manufacturing, and leveraging digital technology to enhance local production and reduce reliance on raw material exports.
Reacting on the development, PETROAN President Dr. Billy Gillis Harry praised President Bola Tinubu for taking a strong stance on economic self-reliance but urged caution.
“We must ensure that our policies do not compromise energy security. Our primary concern is the availability and affordability of petroleum products in Nigeria to meet the daily consumption volume of over 46 million liters of petrol and other petroleum products.”
He stressed that while the policy has the potential to stimulate local production and reduce Nigeria’s trade deficit, applying it without exemptions for sensitive sectors could result in supply chain breakdowns.
“Petroleum products, pharmaceuticals, and other essential consumables must either be exempted or covered by strategic waivers. The reality is that our refining capacity is still in transition, and sudden restrictions on imports can disrupt supply and fuel inflation.”
PETROAN emphasized that local refineries, while developing, are not yet at full capacity to meet national demand. “This is not just about patriotism; it’s about pragmatism,” Harry said. “Policies must align with existing industrial realities.”
The association also drew lessons from international examples, noting that countries like the United States, under protectionist policies such as “America First,” relied on tariffs and targeted trade restrictions rather than full bans, allowing for flexibility and economic stability.
PETROAN outlined both the benefits of the ban to include boosting of local industry and job creation, reduction in trade deficit and conserves forex; while the disadvantages include risk of essential goods shortages, as well as potential for inflation and supply disruptions.
To avoid the negative outcomes, PETROAN called on the government to “apply wisdom and caution,” urging increased investment in local refining capacity and a phased, data-driven approach to import restrictions.
“Blanket bans will hurt more than help. We support the President’s vision but recommend targeted implementation that secures the economy and the lives of everyday Nigerians.” PETROAN said.
