The Lagos Chamber of Commerce and Industry (LCCI) has expressed concerns over the decision by the Federal Government to impose a 15 per cent import tax on petrol and diesel, noting that such ‘premature restriction’ on imports, without sufficient domestic production, could lead to supply shortages, higher pump prices, and inflationary pressures across critical sectors.

The Chamber, in a statement signed by its Director-General, Dr. Chinyere Almona, on Monday, noted that, while the policy direction aligned with the nation’s long-term objective of achieving energy self-sufficiency and strengthening the naira, the rollout must, however, be measured and strategic to ensure a sustainable economic impact.

While calling for the suspension of the implementation of the policy, the group argued that with local capacity not yet established, the tax would increase the cost of fuels as long as imports continue.

It also called on the government to address the inhibiting factors against local production and refining, before imposing the levy to discourage imports and support local production.

“The Federal Government must prioritise the full operationalization and optimization of local refineries, both public and private, including modular refineries and the recently revitalised major refining facilities.

“A comprehensive framework for crude oil supply to these refineries in Naira rather than foreign exchange will significantly enhance cost efficiency, stabilize production, and strengthen the local value chain,” it stated.

The Chamber added that, while it remained committed to a diversified downstream sector, where multiple refineries, modular plants, and logistics firms thrive, such should, however, be achieved through a level playing field and transparency.

“Ensuring clarity, consistency, and transparency in the implementation of the new tax regime will be crucial in preventing market distortions and sustaining investor trust,” it noted.

The Chamber stated further that while the reform would remain justified from an industrial policy standpoint, its success would however depend on practical implementation, robust safeguards, and parallel reforms to alleviate cost burdens on businesses and consumers.

The group would also want the government to address the inhibiting factors against local production and refining before imposing this levy to discourage imports and support local production.

“We recommend that the implementation of this tax policy be postponed and that, during the transition period, the government demonstrate its commitment through action by empowering local refiners through an efficient crude-for-Naira supply chain that ensures sufficient crude,” it added.

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