The Centre for The Promotion of Private Enterprise (CPPE) has  described the 40% tariff imposed on used passenger vehicles, in the 2036  Fiscal Policy Measures and Amendments, as excessively high; since the nation’s economy still relies predominantly on road transportation for mobility and logistics.

 

 

The Centre, in a statement issued by its Chief Executive Officer, Dr. Muda Yusuf,  also urged the federal government to come up with policies that would strengthen fiscal protection for investments in domestic petroleum refining, in order to consolidate recent gains and catalyse new capital inflows into the sector.

 

 

CPPE, in its review of the policy called for a more supportive  fiscal policy for the nation’s automotive sector, while  recommending  that import tariffs on this category of vehicles should be reduced to a maximum of 25%, inclusive of all charges.

 

It argued that the recommendation had become imperative,  given the weak state of public mass transit, adding that 40% tariff on used vehicles, as recommended, would have  significant welfare and employment implications, since  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.

 

The Centre would also want  Semi Knocked Down (SKD) parts to attract a tariff of not more than 5%, while Completely Knocked Down (CKD) parts should be zero-rated, to  enhance the viability and competitiveness of local automobile assembly, with positive outcomes for industrialisation, employment, and value-chain development.

 

As a way of stemming the rising transportation costs in the country, the organization called for a reduction in import duty on mass transit buses to 5%,  and  a full VAT waiver. This, it argued, would incentivise private sector investment in mass transit, encourage employers and public institutions to provide staff transportation, and stimulate government investment in public mobility.

 

As a way of solving the nation’s lingering energy crisis, the organization advocated for a reduction in tariffs on renewable energy equipment, particularly batteries and inverters, in order to improve access to clean and reliable energy; since current costs, it argued, 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,” it added.

 

Describing the policy framework as a decisive and strategic pivot towards strengthening domestic production, deepening industrialisation, and reducing import dependence, the Centre noted that the framework also presents  a mix of significant opportunities and risks, depending on sector positioning and business models for investors.

 

The Centre identified the upward review of tariffs on a broad range of imported finished goods, including food, plastics, textiles, and metal products, with combined tariff and levies ranging between 20% and 70%, as one of the major highlights of the policy.

 

“This measure raises the landing cost of imports and strengthens the competitive position of domestic producers. Given Nigeria’s continued reliance on imports across several consumption categories, this policy has the potential to materially reshape market dynamics,” it noted.

 

The federal government recently  released the 2026 Fiscal Policy Measures and Tariff Amendments, some of which include: revisions to the Import Adjustment Tax (IAT) covering 192 tariff lines, selective import restrictions, tariff reductions on critical industrial inputs, excise duty adjustments, and the introduction of a green tax on selected categories of imported vehicles.

 

In addition, a National List comprising 127 items—largely intermediate goods and industrial inputs—which attracts concessional tariffs of 0–10%, aimed at enhancing manufacturing competitiveness.