The Centre for the Promotion of Private Enterprise (CPPE) has urged the Federal Government to reduce import duties on renewable energy equipment to 5% and grant a full Value Added Tax (VAT) waiver to address Nigeria’s energy challenges.
The recommendation was contained in a policy brief reviewing the 2026 Fiscal Policy Measures and Tariff Amendments, highlighting concerns over the high cost of solar batteries and inverters.
According to the CPPE, the current pricing of these products remains prohibitive for most households and small businesses, limiting access to reliable and clean energy alternatives.
The think tank said lowering tariffs on renewable energy components would significantly improve access to alternative power solutions and enhance productivity.
It noted that high costs of solar batteries and inverters continue to restrict adoption among households and small enterprises.
The group also recommended reducing import duties on mass transit buses to 5% with a full VAT waiver to encourage private sector investment in public transportation.
CPPE further proposed capping tariffs on used passenger vehicles (2000cc and below) at 25%, arguing that current rates exceeding 50% place a heavy burden on the middle class and hinder growth in e-hailing and logistics sectors.
The organisation maintained that these measures would ease cost pressures, improve mobility, and support broader economic activity.
The recommendations come shortly after the Federal Government introduced new fiscal measures and tariff adjustments.
The 2026 Fiscal Policy Measures, which took effect on April 1, include Supplementary Protection Measures aligned with the ECOWAS Common External Tariff framework.
These reforms are part of broader efforts to balance revenue generation with economic growth.
While acknowledging the government’s push to promote domestic production, CPPE identified gaps in policy implementation.
The group noted the absence of tariff protection for locally refined petroleum products despite significant private sector investments.
It argued that protective tariffs are needed to safeguard investments, conserve foreign exchange, and strengthen energy security.
CPPE also warned that while the reforms create opportunities for manufacturers and agro-processors, they could pose structural risks for import-dependent businesses.
The think tank emphasised the need for a balanced approach that supports both local production and economic stability.
The proposed reforms align with Nigeria’s broader fiscal and environmental objectives.
Recent policies aim to integrate environmental considerations into the tax framework while boosting government revenue.
The CPPE’s recommendations add to ongoing policy debates on how best to address Nigeria’s energy deficit while supporting economic growth and affordability.