The Centre for the Promotion of Private Enterprise (CPPE) has urged the Federal Government to reduce import duties on solar energy equipment and remove Value Added Tax (VAT) on the products, as part of efforts to address Nigeria’s persistent power challenges.
In a policy statement reviewing the country’s latest fiscal reforms, the organisation stressed that the current cost of renewable energy components remains too high for many Nigerians. It argued that lowering tariffs would make solar solutions more accessible to households and small businesses struggling with unreliable electricity supply.
According to CPPE, “Import duty on these products should be reduced to 5%, with a full VAT waiver to make clean energy more accessible.”
The group highlighted that solar batteries and inverters are still priced beyond the reach of many citizens. This situation, it said, has slowed down the adoption of alternative energy sources despite growing demand for stable power.
It explained that reducing import duties would significantly cut the cost of acquiring solar systems, thereby improving energy access and boosting productivity across homes and businesses.
CPPE also extended its recommendations beyond the energy sector. It proposed that import duties on mass transit buses should be reduced to 5 percent, along with a full VAT waiver. The aim, it said, is to encourage private investment in public transportation and ease mobility challenges.
In addition, the think tank called for a review of tariffs on used vehicles. It suggested that duties on cars with engine capacity of 2000cc and below should not exceed 25 percent, noting that the current charges place heavy financial pressure on the middle class and limit opportunities in sectors like logistics and ride hailing services.
These recommendations come shortly after the Federal Government introduced new fiscal policy measures and tariff adjustments aimed at balancing revenue generation with economic growth. The reforms include changes to import duties, introduction of new taxes on selected items, and incentives for certain sectors.
While acknowledging the government’s intention to promote local production, CPPE pointed out gaps in the policy framework. It noted that some sectors, such as locally refined petroleum products, lack sufficient protection despite significant private investments.
The organisation warned that although the reforms may benefit manufacturers and agro processors, they could also create challenges for businesses that rely heavily on imports.
Overall, CPPE emphasised the need for a balanced policy approach that supports domestic industries while ensuring affordability and economic stability. It maintained that reducing tariffs on renewable energy equipment would not only improve access to clean power but also help reduce pressure on the national grid and stimulate broader economic activity.
