NNPC Ltd is seeking technical equity partners to help revive three of its refineries which have remained idle despite significant investments, its chief executive said just as Chief Ayiri Emami a strong Tinubu supporter in Delta State has expressed strong disapproval over the Federal Government’s approval of a 15 per cent ad-valorem import duty on petrol and diesel, warning that the policy will worsen the hardship facing ordinary Nigerians. The new tariff, approved by President Bola Tinubu on the recommendation of the Federal Inland Revenue Service FIRS, is aimed at protecting domestic refineries and stabilizing the downstream oil sector, the government claims. The refineries, with a combined capacity of 445,000 barrels per day, alongside the Dangote Petroleum Refinery, could help Nigeria end its reliance on imported fuel and become a net exporter.
“We are looking ahead with optimism to ensure our refineries operate effectively. We are dedicating significant time to a detailed review and are eager to implement our insights,” NNPC CEO Bayo Ojulari said in a post on X. Former NNPC head Mele Kyari had also pursued external partnerships after securing $2.5 billion in contracts to rehabilitate the refineries. Still, the facilities remain non-operational as the Nigerian government struggles to let go of non-performing assets.
According to FIRS Chairman, Zacch Adedeji, the measure seeks to “operationalize crude transactions in local currency, strengthen local refining capacity and ensure a stable, affordable supply of petroleum products across Nigeria.” He added that the new duty structure would “prevent duty-free fuel imports from undermining local refineries and promote a fair, competitive downstream sector.” Following the presidential directive, both the FIRS and the Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA have been instructed to commence immediate implementation of the tariff.
However, Chief Emami, who is also the Chairman and Chief Executive Officer of A & E Group, a conglomerate with interests in oil and gas, construction, and haulage, said the move would inflict additional pain on citizens already struggling with economic hardship. Speaking with journalists in Abuja, he cautioned that “anybody advising Mr. President to impose a 15 percent tax on petroleum right now is not doing him any good. This kind of policy will not hurt marketers, it will hurt ordinary Nigerians. Whatever tax you put on petroleum goes straight back to the people on the streets. Nigerians are already hungry and struggling.” He lamented the ripple effect of high fuel costs on rural livelihoods, particularly among riverine communities dependent on fishing.
“If I were to meet Mr President, I would tell him plainly, and I have told people in my community the same thing. You see, in my area, especially among those of us who live by the river and depend on fishing, the cost of fuel affects everything. When you buy fuel, it determines whether you can even go out to fish. It is not that the fish are gone, it is that we cannot afford to reach them anymore,” he said. Rejecting the policy outright, Emami added; “So anybody bringing up this idea of 15 percent tax, I will not support it. This is my government, and I know we need money, but there are other areas to look into. Whatever you do in petroleum pricing always goes back to the masses.” He urged the Federal Government to suspend the tariff until meaningful economic relief measures are in place.
“For me, that 15 percent should be kept aside until the government provides more relief to Nigerians. Even after removing fuel subsidy, we haven’t seen much positive reflection. Things are still hard. So why add another burden? Some people don’t care about Mr President or what he is going through – they just want to create more problems. Those are my honest opinions on the matter,” he declared.
