Lagos, April 20, 2026 – The Centre for the Promotion of Private Enterprise (CPPE) had advised the federal government to strengthen fiscal protection on investments in domestic petroleum industry.
The CPPE gave the advice on Sunday in a policy brief on the recently released 2026 Fiscal Policy Measures and Tariff Amendments.
In the policy brief signed by Muda Yusuf, its Director- General, the Centre said there was a compelling need for government to protect investments in the local oil industry.
It said that the domestic refineries were currently operating with virtually no tariff protection, an evident policy gap when compared to other segments of the industrial sector.
“Instituting protective tariffs for locally refined petroleum products is therefore critical to safeguarding these investments, deepening backward integration, enhancing energy security, conserving foreign exchange, and reinforcing economic resilience and macroeconomic stability,” it said.
The CPPE also called for a review of the 40% tariff on used passenger vehicles, particularly those with engine capacity of 2000cc and below.
It said that with the additional charges, the effective tax burden had exceeded 50%, which it said, was excessively high for an economy that relies predominantly on road transportation for mobility and logistics.
“This is especially problematic given the weak state of public mass transit. The tariff has significant welfare and employment implications, as it constrains access to vehicle ownership for the middle class and undermines job creation potential in the e-hailing and car hire ecosystem at a time of elevated unemployment.
“CPPE recommends that import tariffs on this category of vehicles should be reduced to a maximum of 25%, inclusive of all charges,” it said.
The CPPE said a more supportive tariff regime for the automotive assembly sector was imperative.
“CPPE recommends that Semi Knocked Down (SKD) parts attract a tariff of not more than 5%, while Completely Knocked Down (CKD) parts should be zero-rated.
“This would enhance the viability and competitiveness of local automobile assembly, with positive outcomes for industrialisation, employment, and value-chain development.
The CPPE also recommended reduction of import duty on mass transit buses to 5% and granting a full VAT waiver in response to rising transportation costs.
It said this would incentivise private sector investment in mass transit, encourage employers and public institutions to provide staff transportation, and stimulate government investment in public mobility. The overall effect would be to ease the burden of high transport costs on citizens.
The CPPE also advocated a reduction in tariffs on renewable energy equipment, particularly batteries and inverters, to improve access to clean and reliable energy.
“Current costs are prohibitive for most households and small businesses. Import duty on these products should be reduced to 5%, with a full VAT waiver.
“This would provide a practical alternative to unreliable grid electricity and support productivity across the economy.”
The Centre described the 2026 fiscal policy measures as a bold and necessary step towards economic restructuring, industrialisation, and enhanced economic resilience.
“For private investors, the framework presents substantial upside potential in manufacturing, agro-processing, recycling, and green industries. However, it also introduces risks for import-dependent sectors and consumer-facing businesses.
“Ultimately, the beneficiaries in this evolving policy landscape will be investors who align with the domestic production agenda, integrate into local value chains, and proactively adapt to Nigeria’s shifting economic structure.
