Ban on foreign goods import may lead to fuel, other price hikes — PETROAN
The Petroleum Products Retail Owners Association of Nigeria, PETROAN, has urged President Bola Ahmed Tinubu to be cautious with its proposed implementation of the ban on foreign goods imports.
This comes as PETROAN said the ban on foreign goods, which heralded the Nigeria First Policy, may lead to an increase in the prices of premium motor spirit and other imported goods.
The national president of PETROAN, Gillis-Harry, disclosed this in a statement on Tuesday.
His comments come as President Bola Ahmed Tinubu on Monday, after a Federal Executive Council meeting at the Presidential Villa, announced the Nigeria First Policy aimed at boosting the country’s economy.
Reacting, Gillis-Harry, while applauding the initiative, warned against unintended consequences in the implementation of the policy.
Gilly-Harry urged” the government to ensure that the policy does not lead to
shortages or price increases, particularly in the petroleum sector, where local refining
Capacity is still being developed.
“PETROAN advised that essential and sensitive products, such as petroleum products, pharmaceuticals, and other highly consumable goods, should be gradually phased out.
This is because some products may not be readily available locally, or their local
Production may be insufficient to meet demand, leading to shortages and price hikes.
He further identified two major challenges the ban on foreign goods may cause in Nigeria.
“Potential Shortages, Banning imports can lead to shortages of essential goods, particularly if local production is insufficient or unreliable.
“Price Increases: Limiting importation can result in higher prices for consumers, as
Local producers may not be able to meet demand efficiently, leading to inflationary pressures.
“Our primary concern is the availability and affordability of petroleum products in Nigeria to meet the daily consumption volume of over 46 million litres of petrol and other petroleum products. 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.
Earlier, Salient Times reported that economic experts and stakeholders had commended the policy, noting that it will boost domestic businesses and the Nigerian economy.
