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🇳🇬 Nigeria /Economy & Trade

Nigeria's CPPE calls for tariff adjustments to boost domestic refining, renewable energy

From The Punch · (9h ago) English

Translated from English, summarized and contextualized by DistantNews.

TLDR

  • The Centre for the Promotion of Private Enterprise (CPPE) urges Nigeria to implement targeted tariff adjustments to bolster domestic refining and renewable energy.
  • CPPE CEO Muda Yusuf stated that higher tariffs on imported finished goods could boost local industries but warned of challenges for import-dependent businesses.
  • Yusuf expressed concern over weak fiscal protection for petroleum product imports, emphasizing the need for stronger tariffs to support domestic refineries and ensure energy stability.

The Centre for the Promotion of Private Enterprise (CPPE) has issued a call for strategic tariff adjustments in Nigeria, aiming to invigorate the domestic refining sector and expand access to renewable energy sources. This recommendation comes in response to the 2026 Fiscal Policy Measures and Tariff Amendments, which signal a move towards increased domestic production and reduced import reliance.

CPPE Chief Executive Officer, Muda Yusuf, highlighted that while the new policy offers opportunities, particularly for sectors like agro-processing and light manufacturing through higher tariffs on finished goods, it also presents risks. Businesses heavily reliant on imports may face significant hurdles, with increased costs potentially compressing profit margins and reducing sales volumes.

Protective tariffs for locally refined products are vital for investment security, energy stability, foreign exchange conservation, and macroeconomic strength

— Muda YusufYusuf's statement on the necessity of tariffs to support Nigeria's domestic refining industry.

Yusuf specifically voiced concern regarding the perceived lack of robust protection for the petroleum product import sector. He stressed the critical importance of protective tariffs for locally refined products to safeguard investments, ensure energy stability, conserve foreign exchange, and strengthen the overall macroeconomic landscape. The absence of such measures, he argued, places local refineries at a distinct disadvantage.

Furthermore, the CPPE has called for a review of the existing 40 percent tariff on used vehicles with engine capacities below 2000cc, noting that additional charges push the effective rate significantly higher. This high tariff regime, Yusuf warned, could restrict vehicle access, thereby hindering job creation in sectors like e-hailing and car hire services. The organization advocates for a maximum tariff of 25 percent, inclusive of all charges, and proposes more supportive policies for the automotive sector, including lower tariffs for semi-knocked-down and completely knocked-down components to stimulate local assembly. Lower duties on mass transit buses are also recommended to boost public transportation.

This measure raises import costs and strengthens domestic producers’ competitiveness. Given reliance on imports, the policy could significantly reshape market dynamics

— Muda YusufYusuf's analysis of the impact of higher tariffs on imported finished goods.
DistantNews Editorial

Originally published by The Punch in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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