Dangote & Innoson: That 15% Import Tax on Fuel Is Also Good on Car Import

Now the West is power, what is good for the northern petroleum refiner is also good for Eastern car manufacturer. Otherwise, what’s good for the goose is also good for the gander.

Only recently Dangote is trending because the Bola Ahmed Tinubu administration hurriedly introduced a new 15% import tax, in addition to the anticipated 5% surcharge in 2026 to save the new Dangote Refinery in Lagos. That is the stark truth and nothing but it.

Yes, many Nigerians believe Aliko Dangote has a hand in it, as it only plays to his advantage. That is not our worry after all

Otherwise, as regards fuel and diesel, anyone who imports fuel or diesel will pay 15% of the total value of the shipment. i.e. if the total cost of an import is $1M, the importer is expected to pay $150k tax to the government.

Therefore, to recover, they will shift the tax to the consumers (Nigerians). If fuel sells for ₦840, they will likely add 15% to it and sell to you at ₦966 per litre. In some regions, it could hit ₦1,200/l.

The key issue is that this move is to protect local refineries like Dangote’s. It aligns with the PIB, Petroleum Industry Bill, late President Buhari signed in 2021.

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If a new refinery that is built in Lagos by a northern must be protected, why not a car manufacturing firm, the Innoson Vehicle Manufacturing (IVM), built in Nnewi by an Igboman, chief Innocent Chukwuma if we want to protect indigenous industries to grow after all.

On the official protection of Dangote Refinery, analysts say this doesn’t inherently mean the price of fuel and diesel will increase. It will only increase at fuel stations whose products are imported, not sourced locally like MRS, Ardova, Heyden, etc, who partner with Aliko Dangote.

So it totally benefits Aliko Dangote. Hence, the blame. But the problem is — over 60% of Nigeria’s Petroleum is imported.

Now why can IVM and even other emerging car assembly firms in Lagos get the same official protection after all they are all producing and need the same government protection than a clear case of selective protection.