LAGOS, Nigeria — The Centre for the Promotion of Private Enterprise (CPPE) has called on the Federal Government to reduce import duties on renewable energy equipment to 5 percent and grant a full Value Added Tax (VAT) waiver to address Nigeria’s energy challenges, according to a policy brief released on April 20, 2026.
Okay News reports that the CPPE made the recommendation in its review of the 2026 Fiscal Policy Measures and Tariff Amendments, highlighting concerns over the high cost of solar batteries and inverters which it said remain prohibitive for most households and small businesses.
“Import duty on these products should be reduced to 5%, with a full VAT waiver to make clean energy more accessible,” the CPPE stated in the brief.
The think tank also recommended reducing import duties on mass transit buses to 5 percent with a full VAT waiver to encourage private sector investment in public transportation. It further proposed capping tariffs on used passenger vehicles of 2000cc and below at 25 percent, arguing that current rates exceeding 50 percent place a heavy burden on the middle class and hinder growth in e-hailing and logistics sectors.
The recommendations come after the Federal Government introduced new fiscal measures that took effect on April 1, 2026. The 2026 Fiscal Policy Measures include Supplementary Protection Measures aligned with the ECOWAS Common External Tariff framework. The policy introduced an Import Adjustment Tax (IAT) on 192 tariff lines and an import prohibition list covering 17 items from non-ECOWAS countries.
The CPPE noted the absence of tariff protection for locally refined petroleum products despite significant private sector investment, arguing that protective tariffs are needed to safeguard investments, conserve foreign exchange, and strengthen energy security.
The group warned that while the reforms create opportunities for manufacturers and agro-processors, they could pose structural risks for import-dependent businesses.
Tariffs on fully built passenger vehicles have been reduced to about 40 percent from previous levels of 70 percent, while crude palm oil now attracts an effective rate of 28.75 percent.
The CPPE maintained that its proposed measures would ease cost pressures, improve mobility, and support broader economic activity.
 has called on the Federal Government to reduce import duties on renewable energy equipment to 5 percent and grant a full Value Added Tax (VAT) waiver to address Nigeria's energy challenges, according to a policy brief released on April 20, 2026.){kind=link}