Mr Otedola said it will help establish a stable and sustainable pricing regime, contributing to greater control of inflation and long-term economic stability.
Femi Otedola, billionaire businessman and chairman of Geregu Power Plc, has commended President Bola Tinubu for implementing a 15 per cent import tariff on petrol and diesel.
Mr Otedola in a statement posted on his X handle on Tuesday described the move as a "bold and decisive step" towards safeguarding local industries that have made substantial investments in domestic production and refining capacity.
Last month, Mr Tinubu approved a 15 per cent import tariff on all imported petrol and diesel. The government stated that the directive aimed to "strengthen local refining capacity, and ensure a stable, affordable supply of petroleum products across Nigeria."
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The tariff is essentially to ensure that imported petrol is not cheaper than that produced by Dangote refinery.
The implementation would commence after a 30-day transition window, allowing importers to adjust cargoes already in transit and ensuring a smooth rollout without market disruption, following the request by the chairman of the revenue agency, Federal Inland Revenue Service (FIRS), Zacch Adedeji, whose memo triggered the presidential approval.
While many Nigerians argue that the new tariff policy would lead to an increase in the retail price of petrol, Mr Otedola said it will help establish a stable and sustainable pricing regime, contributing to greater control of inflation and long-term economic stability.
For decades, he said Nigeria's industrial base has suffered from unchecked importation of cheaper and often substandard goods, a practice that crippled once-thriving sectors such as textiles, local vehicle assembly, and manufacturing.
"We cannot afford to allow history to repeat itself within the energy sector, particularly now that Nigeria possesses the capacity to meet its petrol and diesel requirements locally," Mr Otedola said.
He emphasised that the tariff will not only protect 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 the nation.
"President Tinubu's ability to deploy policy as a catalyst for economic transformation is truly commendable. His focus on empowering local producers and promoting value addition within Nigeria exemplifies the type of visionary leadership required to steer our nation towards realising its ambition of becoming a $1 trillion economy," he added.
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