By Sherifdeen Amusa
A financial expert, Funsho Doherty has faulted the 15 per cent tariff tax on imported petrol and diesel recently approved by President Bola Tinubu.
Doherty, who had worked at Goldman Sachs & Co., PNC Advisors, Arthur Andersen and was also the pioneer Managing Director of ARM Pension Managers and Pensions Alliance Limited, warned that the decision risked deepening financial strain on the citizens.
The 15 per cent import duty on petroleum products which was approved following a proposal from the Federal Inland Revenue Service (FIRS) could raise fuel prices by about N100 per litre and intensify inflationary pressures nationwide.
Doherty, in an open letter to Senate President Godswill Akpabio, called for a legislative investigation into what he described as “an ill-timed and questionable policy shift”.
He said the decision risked deepening the financial strain on citizens already battling the fallout of fuel subsidy and foreign exchange reforms.
“This policy represents a fundamental and ill-timed change. It follows two major shocks — the removal of petrol and foreign exchange (forex) subsidies — which have already pushed prices up five fold in just two years. Nigerians can least afford another increase at this point,” Doherty stated.
He also faulted the origin and process of the proposal, noting that customs and excise duties were trade policy matters outside the statutory powers of the FIRS.
He said: “It is unclear why this proposal originated from the FIRS. The appropriate institutions are the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Ministry of Trade and Investment”.
He lamented that the 15 per cent tariff shields producers from market risks while transferring costs to consumers.
“The current arrangement allows producers to have it both ways — recovering costs when prices fall and passing on increases when prices rise,” he said, calling for greater transparency around the so-called “cost recovery” mechanism.
Doherty urged the National Assembly to summon the NMDPRA, the Trade Ministry, and key industry operators to explain the circumstances surrounding the new duty and its implications for consumers. He also called for open and transparent hearings to keep the public informed.
He added that major local refiners, including the Dangote Refinery, already enjoyed substantial fiscal incentives such as tax waivers and duty-free operations under export processing zone status, making further tariff protection unnecessary.
The development comes amid growing concern over Nigeria’s rising cost of living.
Since the removal of fuel subsidies in May 2023, petrol prices have increased from about N185 per litre to about N1,000 in most parts of the country. Analysts warn that a new import duty could push prices upward with ripple effects on transport, food prices, and manufacturing costs.
“This further price shock would worsen inflation and household poverty,” said a Lagos-based economist, who described the policy as “pro-industry but anti-consumer”.
