The Centre for the Promotion of Private Enterprise (CPPE) has called on the Federal Government to urgently address a significant policy gap by instituting protective tariffs for the domestic petroleum refining sector.

In a review of the recently approved 2026 Fiscal Policy Measures and Tariff Amendments, the CPPE emphasized that while the new framework strategically pivots toward industrialization and reduced import dependence, the local refining industry remains vulnerable due to a lack of fiscal safeguards.

According to Dr. Muda Yusuf, Chief Executive Officer of the CPPE, there is currently a compelling case for strengthening fiscal protection to consolidate recent gains and catalyze new capital inflows into the refining sector.

The organization noted that domestic refineries are operating with virtually no tariff protection, a stark contrast to other industrial segments that benefit from more robust fiscal support.

This discrepancy is viewed as an evident policy omission that could undermine the significant private investments recently made in domestic refining capacity.

The CPPE maintained that instituting protective tariffs for locally refined petroleum products is critical to safeguarding multi-billion dollar investments and deepening backward integration within the energy value chain.

Beyond protecting individual businesses, such measures are expected to enhance national energy security, conserve scarce foreign exchange, and reinforce the country’s overall economic resilience and macroeconomic stability, Yusuf noted.

While the 2026 measures successfully introduce higher tariffs on various finished goods and concessional rates for industrial inputs, the CPPE argues that the relatively soft fiscal stance on petroleum imports remains a concern.

Aligning the refining sector with the broader industrial policy would not only reduce foreign exchange pressures but also improve Nigeria’s balance of trade, the policy think-thank opined.

It further noted that the institution of a protective tariff regime is essential to ensure the long-term viability of local production as the nation transitions from an import-dependent economy.