Economy And Business

PETROAN Cautions FG on Import Ban, Warns of Economic Shock and Shortages

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By Bunmi Yekini

Abuja, Nigeria — The Petroleum Refineries Owners Association of Nigeria (PETROAN) has cautiously welcomed the Federal Government’s decision to ban the importation of foreign goods that are produced locally. While describing the policy as a bold step toward economic self-reliance, the association warned that poor implementation could result in severe consequences, including inflation and product shortages.

Speaking with journalists in Abuja, the National President of PETROAN, Dr Billy Gillis-Harry, applauded President Bola Tinubu’s administration for the initiative but advised a cautious approach.

“We commend the government’s effort to promote local content and strengthen our domestic economy,” Dr. Gillis-Harry said. “However, our primary concern is the availability and affordability of petroleum products in Nigeria to meet the daily consumption volume of over 46 million litres. We must ensure that our policies do not compromise energy security, as this could have far-reaching consequences for the economy and the well-being of Nigerians.”

The association emphasized the importance of exempting critical and sensitive products, including petroleum products, pharmaceuticals, and highly consumable goods, from the ban or allowing for waivers to ensure continuous availability.

“There are products for which local production is either insufficient or non-existent,” PETROAN warned. “Factors like lack of specialized technology, higher quality standards in imports, and the strategic nature of certain goods justify maintaining some level of importation.”

The association pointed to the U.S. “America First” policy as an example of a more flexible approach, where targeted tariffs were used instead of outright bans.

While noting the potential benefits of the policy, such as job creation, economic growth, and reduced trade deficits, PETROAN also cautioned that unintended effects like product shortages and price hikes could hit Nigerian consumers hard.

“We support the government’s vision but urge it to proceed with wisdom and caution,” Gillis-Harry concluded. “Increased investment in local refining and broader support for domestic industries are necessary to make this policy a success without hurting the average Nigerian.”

PETROAN reaffirmed its commitment to partnering with the government to achieve energy security and economic stability while ensuring Nigerians do not bear the brunt of policy shifts.

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