Lagos, Nigeria \u2014 Renowned economist Gbolahan Olojede has cautioned that the Federal Government\u2019s proposed 15 per cent import duty on petroleum products could reignite inflationary pressures and further strain Nigerian consumers already grappling with high living costs.<\/p>\n
Speaking during an interview with ARISE News on Tuesday, Olojede said that while the policy\u2019s intention \u2014 to protect local industries and encourage domestic refining \u2014 is understandable, the government must adopt a transparent and data-driven approach to avoid unintended economic consequences.<\/p>\n
\u201cOn the face of it, the idea is to protect local industry and create jobs. But the level of transparency in that industry remains a problem,\u201d he said.<\/p>\n
Questions Over Local Refining Costs<\/strong><\/p>\n Olojede questioned why local refineries were not producing fuel at competitive prices despite earlier government assurances that domestic refining would reduce costs.<\/p>\n \u201cThe original goal was to make things cheaper \u2014 no importation, no freight, no forex charges. So why is local refining now more expensive?\u201d he asked.<\/p>\n He added that if local producers were offering higher-quality fuel, such information should be clearly communicated to consumers.<\/p>\n \u201cIf the refinery produces superior fuel, consumers deserve the choice to pay more for quality. But there\u2019s no transparency around that yet,\u201d he stated.<\/p>\n Inflation and Consumer Impact<\/strong><\/p>\n Olojede warned that the 15 per cent import duty would directly translate into higher petrol prices, as importers would pass on additional costs to consumers.<\/p>\n \u201cFifteen per cent means roughly a 15 per cent price increase. Importers will shift that burden to consumers already recovering from the last hike,\u201d he said.<\/p>\n He cautioned that the move could reverse recent progress in stabilizing inflation, which had improved due to lower energy costs earlier in 2025.<\/p>\n \u201cIf we raise costs again now, we risk undoing the gains made. Even if the policy is necessary, we should wait for more stability,\u201d Olojede advised.<\/p>\n Broader Fiscal Concerns<\/strong><\/p>\n Addressing Nigeria\u2019s low tax-to-GDP ratio, Olojede agreed that the government must boost revenue but stressed the need for fiscal fairness and accountability.<\/p>\n \u201cCitizens feel overtaxed because they can\u2019t distinguish taxation from extortion. They pay money that doesn\u2019t reach the government,\u201d he said.<\/p>\n He expressed optimism that the new tax law could improve tax equity, provided there is strong political will.<\/p>\n \u201cMiddle-class Nigerians bear the brunt of taxation while top earners often evade taxes. The more you gain from the economy, the more you should contribute,\u201d he added.<\/p>\n Smuggling and Border Challenges<\/strong><\/p>\n Olojede also warned that the proposed duty could encourage smuggling if efficiency at ports and borders is not improved.<\/p>\n \u201cEvery time you raise official costs, people find shortcuts. Unless port operations become faster and more transparent, smuggling will thrive,\u201d he said, adding that Nigeria\u2019s porous northern borders remain a significant risk.<\/p>\n He commended the Interior Minister\u2019s efforts to strengthen border reforms but urged for a more coordinated national strategy.<\/p>\n Call for Balanced Policy<\/strong><\/p>\n Concluding, Olojede urged the government to pursue fiscal reforms with empathy and accountability.<\/p>\n \u201cWe must move toward sustainability, but with transparency and sensitivity to people\u2019s realities. Nigerians are still recovering; don\u2019t burden them further until the system is ready,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":" Lagos, Nigeria \u2014 Renowned economist Gbolahan Olojede has cautioned that the Federal Government\u2019s proposed 15 per cent import duty on petroleum products could reignite inflationary pressures and further strain Nigerian consumers already grappling with high living costs. Speaking during an interview with ARISE News on Tuesday, Olojede said that while the policy\u2019s intention \u2014 to […]<\/p>\n","protected":false},"author":3,"featured_media":8486,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"Economist Gbolahan Olojede warns that Nigeria\u2019s proposed 15% fuel import duty may raise inflation and worsen consumer hardship.","_seopress_robots_index":"","footnotes":""},"categories":[37,35],"tags":[],"class_list":["post-8483","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-news"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/posts\/8483"}],"collection":[{"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/comments?post=8483"}],"version-history":[{"count":1,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/posts\/8483\/revisions"}],"predecessor-version":[{"id":8487,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/posts\/8483\/revisions\/8487"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/media\/8486"}],"wp:attachment":[{"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/media?parent=8483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/categories?post=8483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/shakamomodu.com\/index.php\/wp-json\/wp\/v2\/tags?post=8483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}