FENRAD urges dialogue on 15% petroleum import duty amid economic woes

Foundation for Environmental Rights, Advocacy and Development (FENRAD) has expressed deep concern over the Federal Government’s recent approval of a 15% import duty on petroleum products, including petrol and diesel, coming at a time of severe economic strain, rising inflation, and widespread hardship across Nigeria.

According to the Executive Director FENRAD, Comrade Nelson Nnanna Nwafor, while acknowledging the government’s intent to promote local refining and economic self-reliance, he warned that the policy, introduced without broad consultation, could further exacerbate inflationary pressures, increase transportation and food costs, and deepen the suffering of already vulnerable Nigerians.

FENRAD strongly believes that in light of the current economic challenges — characterized by unprecedented inflation rates, currency depreciation, and declining purchasing power — government actions must be inclusive, transparent, and consultative.

The Foundation calls for an urgent multi-stakeholder dialogue involving Federal, state, and local government representatives; Labour unions and professional associations; Civil society and community-based organizations; and Private sector actors and local manufacturers, and experts in finance, trade, and energy policy.

According to FENRAD, such consultations will ensure that the 15% import duty and other fiscal reforms are people-centered, evidence-based, and socially responsible, balancing economic objectives with citizens’ welfare.

FENRAD recognized the importance of fostering local refining capacity and reducing reliance on imported petroleum products.

However, the Foundation emphasizes that economic reforms must not come at the expense of human dignity and survival.

The organization therefore urged the Federal Government to: reassess the timing and implementation of the 15% import duty in view of its inflationary consequences.

Engage key stakeholders to design effective cushioning mechanisms and targeted palliatives; ensure transparency in the utilization of revenues generated from such duties; and invest in sustainable domestic production that can stabilize prices, create jobs, and boost industrial growth.

FENRAD maintained that the government’s economic recovery plan must be anchored on consultation, fairness, and inclusivity.

Policies affecting millions of citizens should not be enacted without meaningful engagement with the people and institutions most impacted.

This 15% import duty policy, though well-intentioned, risks worsening inflation and eroding public trust if implemented without consultation and safeguards.

Nigeria needs a people-driven economic reform process. We call on the Federal Government to engage stakeholders in genuine dialogue to ensure that policies uplift rather than burden citizens.”