The Centre for the Promotion of Private Enterprise (CPPE) has called for targeted tariff adjustments to strengthen domestic refining, improve mobility, and expand access to renewable energy nationwide.
CPPE Chief Executive Officer, Dr. Muda Yusuf, made the call in a statement on Sunday in Lagos, reacting to the 2026 Fiscal Policy Measures and Tariff Amendments.
The framework is reported to signal a strategic shift towards domestic production, deeper industrialization, and reduced import dependence.
The measures include revisions to the Import Adjustment Tax across 192 tariff lines, selective import restrictions, lower tariffs on inputs, excise adjustments, and green taxes on imported vehicles.
Yusuf said the framework presents both opportunities and risks, depending on sector positioning and business models.
He highlighted higher tariffs on imported finished goods, including food, plastics, textiles, and metals, with combined levies ranging between 20 and 70 per cent.
“This measure raises import costs and strengthens the competitiveness of domestic producers.
“Given the economy’s reliance on imports, the policy could significantly reshape market dynamics,” Yusuf said.
He noted that agro-processing, light manufacturing, packaging, and metals could benefit, with improved capacity utilization expected.
However, he warned that import-dependent firms may face adjustment challenges under the policy.
According to him, higher tariffs will raise costs for traders, compress margins, and reduce sales volumes.
Yusuf expressed concern over the policy’s relatively soft fiscal stance on petroleum product imports.
He said stronger fiscal protection is needed for domestic refining to consolidate gains and attract investment.
He noted that local refineries lack tariff protection, describing it as a gap compared with other sectors.
“Protective tariffs for locally refined products are vital for investment security, energy stability, foreign exchange conservation, and macroeconomic strength,” he said.
Yusuf urged a review of the 40 per cent tariff on used vehicles below 2000cc engine capacity.
He said additional charges push rates above 50 per cent, making them excessive for a road-dependent economy.
He warned that the policy limits vehicle access and constrains jobs in e-hailing and car hire services.
He recommended reducing tariffs on such vehicles to a maximum of 25 per cent, inclusive of all charges.
On the automotive sector, Yusuf called for a more supportive tariff regime to boost local assembly.
He proposed tariffs not exceeding five per cent for Semi Knocked Down parts and zero duty for Completely Knocked Down parts.
He also urged lower duties on mass transit buses to five per cent, alongside a full VAT waiver.
Yusuf said this would incentivize private investment and encourage organizations to provide staff transport.
“It will also stimulate public mobility investment and ease high transport costs for citizens,” he said.
He advocated lower tariffs on renewable energy equipment, particularly batteries and inverters, to improve affordability.
He recommended reducing import duty to five per cent and granting full VAT waivers.
Yusuf said current costs remain prohibitive for households and small businesses.
He added that the measure would provide alternatives to unreliable grid power and boost productivity.
He said: “The 2026 fiscal measures mark a bold step towards restructuring, industrialization, and resilience.
“For investors, there is strong potential in manufacturing and green industries, but risks remain for import-dependent and consumer-facing sectors.”
