Femi Otedola Hails Tinubu’s 15% Fuel Import Tariff, Warns Against Repeating Past Industrial Collapse

Billionaire businessman and prominent energy sector investor, Femi Otedola, has publicly thrown his support behind President Bola Ahmed Tinubu’s recent decision to implement a 15 per cent ad-valorem import tariff on petrol and diesel, describing the move as essential for safeguarding Nigeria’s energy future.

In a statement posted on his official social media handle today, Monday, November 3, 2025, Otedola hailed the policy as a “bold and decisive step” that will protect domestic investments in Nigeria’s refining capacity. The tariff is set to be applied to the cost, insurance, and freight (CIF) value of imported petroleum products.

“I commend President Bola Ahmed Tinubu for his bold and decisive step in implementing a 15 per cent import tariff on petrol and diesel,” Otedola wrote. “This policy represents a crucial move towards safeguarding local industries that have made substantial investments in domestic production and refining capacity.”

A Lesson from History

Otedola referenced previous eras where lax import policies led to the collapse of thriving Nigerian sectors, a mistake he warned the country cannot afford to repeat within the energy value chain, especially now that Nigeria possesses the capacity to meet its fuel requirements locally.

“For decades, Nigeria’s industrial base has suffered from the unchecked importation of cheaper and often substandard goods, a practice that crippled once-thriving sectors such as textiles, local vehicle assembly, and manufacturing,” he stated. “This tariff not only protects the billions of dollars already invested in refining infrastructure but also underscores the government’s commitment to driving industrialisation, creating employment, and building a sustainable energy future for our nation.”

While the government has positioned the tariff as a “bridge, not a burden,” aimed at market stabilization, industry analysts have cautioned that the policy is likely to be passed on to consumers, potentially increasing the pump price of petrol by an estimated ₦99.72 per litre.

Despite the projected short-term price increase, Otedola maintained that the policy will ultimately provide the certainty needed by investors and help establish a stable and sustainable pricing regime, which is critical for long-term economic stability and steering Nigeria toward its ambitious $1 trillion economy target.