April 20, (THEWILL) — The Centre for the Promotion of Private Enterprise (CPPE) has called on the Federal Government to cut import duties on renewable energy equipment to 5 percent and grant a full Value Added Tax (VAT) waiver to tackle Nigeria’s persistent energy challenges.
The recommendation was outlined in a policy brief reviewing the 2026 Fiscal Policy Measures and Tariff Amendments. The CPPE expressed concern over the rising cost of solar batteries and inverters, noting that current prices remain out of reach for many households and small businesses.
According to the think tank, reducing tariffs on renewable energy components would significantly expand access to clean and reliable power while boosting productivity across sectors. It stressed that the high cost of solar solutions continues to limit adoption, especially among small enterprises that depend on affordable energy alternatives.
“Import duty on these products should be reduced to 5 percent, with a full VAT waiver to make clean energy more accessible”, the CPPE stated.
Beyond energy, the group also recommended lowering import duties on mass transit buses to 5 percent, alongside a VAT waiver, to encourage private investment in public transportation. It further proposed capping tariffs on used passenger vehicles (2000cc and below) at 25 percent, arguing that current rates exceeding 50 percent place undue pressure on the middle class and constrain growth in e-hailing and logistics.
The CPPE maintained that these reforms would ease cost burdens, improve mobility, and stimulate economic activity following the government’s recent fiscal adjustments.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
