The Centre for the Promotion of Private Enterprise (CPPE) has urged the Federal Government to reduce import duties on renewable energy equipment to five per cent and grant a full Value Added Tax (VAT) waiver to make clean energy more affordable for Nigerians.
The recommendation was contained in a policy brief reviewing the 2026 Fiscal Policy Measures and Tariff Amendments, where the organisation raised concerns about the high cost of solar batteries and inverters in the country.
According to the CPPE, the current pricing of these renewable energy products remains beyond the reach of many households and small businesses, limiting access to reliable and sustainable power alternatives.
The think tank said lowering tariffs on renewable energy components would significantly improve access to alternative power solutions and boost productivity across various sectors of the economy.
“Import duty on these products should be reduced to five per cent, with a full VAT waiver to make clean energy more accessible,” the organisation stated.
It noted that the high cost of solar batteries and inverters continues to slow the adoption of renewable energy among households and small enterprises seeking alternatives to unreliable grid power.
In addition to renewable energy reforms, the CPPE also recommended reducing import duties on mass transit buses to five per cent alongside a full VAT waiver. The organisation said the move would encourage private sector investment in public transportation and help ease urban mobility challenges.
The group further proposed capping tariffs on used passenger vehicles with engine capacities of 2000cc and below at 25 per cent.
According to the CPPE, the current tariff rates—often exceeding 50 per cent—place a heavy financial burden on the middle class and limit growth opportunities in sectors such as e-hailing and logistics.
The organisation argued that implementing these measures would help ease cost pressures, improve mobility, and stimulate broader economic activity.
The recommendations come shortly after the Federal Government introduced new fiscal measures and tariff adjustments as part of broader economic reforms.
The 2026 Fiscal Policy Measures, which took effect on April 1, include Supplementary Protection Measures aligned with the Economic Community of West African States (ECOWAS) Common External Tariff framework.
Under the policy, an Import Adjustment Tax was introduced on 192 tariff lines, while an import prohibition list covering 17 items from non-ECOWAS countries was also established.
The reforms also include a national list of 127 items with reduced import duties aimed at supporting key sectors of the economy.
As part of the adjustments, tariffs on fully built passenger vehicles were reduced to about 40 per cent from previous levels of around 70 per cent, while crude palm oil now attracts an effective rate of 28.75 per cent.
The measures form part of the Federal Government’s strategy to balance revenue generation with economic growth while integrating environmental considerations into the fiscal framework.
New vehicle levies are also structured based on engine capacity, with incentives designed to promote cleaner and more energy-efficient alternatives.
The CPPE said its recommendations align with Nigeria’s broader fiscal and environmental objectives, particularly efforts to expand access to renewable energy and address the country’s persistent power deficit.
The policy proposals add to ongoing debates on how best to support clean energy adoption while ensuring affordability and economic growth.
