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Home»Editor's Choice»Tariff Isonu When Government Becomes the Middleman of Monopoly by Oladapo Ojo
Editor's Choice

Tariff Isonu When Government Becomes the Middleman of Monopoly by Oladapo Ojo

Oluwafemi OlasegiriBy Oluwafemi OlasegiriNovember 3, 2025Updated:November 3, 2025No Comments4 Mins Read
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Oladapo Ojo
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In Yoruba, ‘Isonu’ means something that is wrong , morally off balance, but that people find hard to condemn openly. It’s the kind of wrongdoing that hides behind excuses, wrapped in official statements and clever justifications. And what our government has just done with the newly announced 15% import tariff on petrol and diesel fits that description perfectly. It is Tariff Isonu.

For decades, Nigeria’s refining dream has been held hostage by the expectation of one man’s capacity. We were told the Dangote Refinery would be the saviour, the silver bullet that would end fuel importation and save the naira. Yet, months after its commissioning, imported products still land cheaper than Dangote’s supply, in the last one week the difference is almost 40 naira as widely reported.

Instead of fixing that imbalance through competition or efficiency, government has decided to tilt the playing field with tariffs, effectively punishing importers and consumers while protecting one private enterprise.

This is not patriotism; it is protectionism at its best. It is Isonu — the kind of mistake we make with confidence. Is there any other refinery that will benefit from this, none in the nearest one year or more. He made a bold move to double capacity, when he’s not currently operating at full capacity, the regulator says he can’t currently meet our daily consumption but we chose to protect an entity instead of a people.

Dangote himself, in one of his public letters, mentioned, cost recovery. Fair enough — every business should recover its cost. But why should government policy be designed to help one company recover its private investment? No other major refinery exists today to challenge his pricing power, so what we are doing is not “supporting local production”; it is institutionalizing monopoly. This is a refinery that enjoyed preferential treatment with direct allocation from CBN in the days of former CBN’s Governor, Godwin Emefiele.

Just like deja Vu, we’ve seen this movie before. In cement, Dangote wields market control that keeps prices higher in Nigeria than in many other African countries where the same company operates. His profit margin is higher in Nigeria than any other country. At the outset, Dangote cement said prices of cement will drop, but immediately it stabilized and dwarf smaller producers, it began to increase prid.Now, history threatens to repeat itself in the oil sector — only this time, it will hit every household and transport business directly. When fuel prices go up, food, rent, transport, and every service follow.

Instead of opening the market to genuine competition by fast-tracking modular refineries and encouraging fair importation, the government is building tariff walls around one player. That is not industrial policy — that is industrial capture.

A government truly committed to the people should ask:
Why is imported fuel cheaper than locally refined fuel?
Why are we imposing a 15% tariff instead of addressing inefficiency and logistics costs?
Why is cost recovery for one company a national priority when millions can barely recover their daily bread?

Nigeria does not need another monopoly; we need a competitive market that rewards efficiency, not proximity to power.
If this continues unchecked, the same Isonu that made cement unaffordable will soon make fuel unaffordable — and the people, once again, will be left to suffer in silence while applauding the very thing that hurts them. If the intention of the tarrif is to conserve forex, I do rather you allow continuous import and ask importers to source forex outside the CBN to allow for a more fair playing field of the intention to conserve foreign exchange.

It is time for Nigerians to call Isonu by its name.

A wrong policy, no matter how neatly packaged, remains wrong.

Content Credit: Ojo Oladapo

Ojo Oladapo is a Nigerian business analyst, writer, and environmental advocate with a Master’s degree in Sustainable Environmental Studies. He is the author of “Bleeding Farm,” a thought-provoking work of fiction that explores the intersection of cattle rustling, armed banditry, and resource control in Northern Nigeria. Known for his insightful political commentaries and deep engagement with national issues, Ojo’s writings reflect his commitment to governance reform, social justice, and Nigeria’s sustainable future.

Beyond writing, he has featured in a few Nigerian film projects and currently leads a growing enterprise in sewage management, driving innovative and sustainable sanitation solutions. Passionate about Nigeria’s progress, Ojo continues to use his voice and ventures to promote environmental responsibility, leadership accountability, and inclusive national development.

Economic Policy Oladapo Ojo Tariff Isonu
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Oluwafemi Olasegiri
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I am Oluwafemi Olasegiri, a seasoned software engineer, AI strategist, and technology entrepreneur with over a decade of experience in software development and IT advisory. As the CEO of Zion Reborn Limited, I specialize in building AI-driven solutions for businesses, government institutions, and inclusive education. My expertise spans artificial intelligence, automation, and digital transformation, with a strong focus on bridging the gap between technology and real-world applications. Through my writing, I aim to share insights on emerging tech trends, AI innovations, and groundbreaking discoveries that shape the future of technology.

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