MEMAN kicks against 15% fuel tariff, urges Gov't to prioritize transparency

By Olakunle Oke 

The Major Energies Marketers Association of Nigeria (MEMAN) has kicked against the 15% fuel import tariff, calling on the Federal Government instead to prioritize transparency and clarity in the implementation of its policies.

The Chief Executive Officer of the Major Energies Marketers Association of Nigeria (MEMAN) Clement Isong made this known during a webinar presentation on "Fostering Competition and Innovation: Lessons from Deregulated Markets for Nigeria’s Energy Sector."

In his addrsss, the MEMAN CEO argued that the nation must deepen its refining capacity and add value locally to achieve energy security and productivity.

He referenced the National Petroleum Policy of 2017, which calls for increased private sector participation in refining and efficient utilization of existing assets.

He noted that Nigeria’s four refineries two in Port Harcourt, one in Warri, and one in Kaduna remain idle despite huge investments, stressing that getting them operational should be a national priority. “Whatever solution the NNPC adopts, whether through privatization or private partnership, the goal must be to bring those refineries back to life,” he stated.

On the issue of tariffs, the MEMAN chief cautioned against the 15 percent import tariff on petroleum products, describing it as excessive and counterproductive.

According to him, such a tariff would raise the pump price of petrol by as much as ₦122 per litre, potentially pushing the cost near ₦1,000 in some regions, and triggering inflation through higher transportation and logistics costs.

He argued that tariffs should be the last resort, warning that prolonged tariff regimes encourage inefficiency and monopolies. Instead, he urged the government to promote transparency through data publication, strengthen anti-smuggling measures, and ensure a competitive market that protects consumers.

“We must learn from countries like Ghana, where data transparency helps protect consumers and improve efficiency. The regulator’s regular publication of data is the most effective way to safeguard consumers in this sector,” he added.

The MEMAN CEO further recommended that if any tariff must be applied, it should be temporary, moderate, and reviewed regularly through a sunset clause. He proposed alternatives such as a fixed freight charge instead of a percentage-based tariff to prevent excessive cost escalation.

He concluded by applauding government efforts to support local refineries but maintained that real progress lies in operationalizing existing facilities and ensuring policies that promote fair competition and affordable energy for Nigerians