CPPE calls for tariff shifts to protect local refineries and boost mobility

Keypoints

• The Centre for the Promotion of Private Enterprise (CPPE) has reacted to the 2026 Fiscal Policy Measures, praising the shift toward industrialization but warning of specific gaps.
• Higher tariffs (between 20% and 70%) on finished goods like textiles, plastics, and food are expected to boost local producers but raise costs for traders.
• Dr. Muda Yusuf, CEO of CPPE, expressed concern over the lack of fiscal protection for domestic refineries, noting they lack the tariff support given to other local industries.
• Vehicle tariffs are a major pain point; the CPPE is calling for a reduction of the 40% duty on used cars (below 2000cc) to a maximum of 25% to support e-hailing and logistics.
• Renewable energy and mass transit are high priorities, with the center advocating for zero VAT and 5% duties on batteries, inverters, and large buses.

Main Story

Nigeria’s 2026 fiscal roadmap is a “bold step,” but it might be leaving the nation’s newest industrial giants—its refineries—out in the cold. On Sunday, April 19, 2026, the CPPE released a detailed analysis of the new tariff amendments.

While the policy aggressively protects local manufacturers of textiles and metals by slapping high levies on imports, Dr. Muda Yusuf pointed out a strange omission: there is currently no significant tariff protection for locally refined petroleum products.

To ensure energy security and save foreign exchange, the CPPE argues that local refining must be shielded from a flood of cheaper, “soft-taxed” imports.

The center also took aim at the high cost of moving people and goods. With duties on small engine vehicles often exceeding 50% after all charges, the CPPE warned that the “road-dependent”

Nigerian economy is being throttled. By slashing duties on used cars and mass transit buses, and removing VAT on solar components, the government could simultaneously lower transport costs and provide an escape route from the unreliable national power grid.

The Issues

The primary challenge is the “refining-protection” gap; without a tariff advantage, local refineries like Dangote may struggle to compete with global players who have lower operational costs. Authorities must solve the problem of transportation-inflation, as high vehicle duties directly lead to higher bus fares and food prices. Furthermore, there is a renewable-affordability risk; as long as inverters and batteries remain “prohibitively expensive” due to taxes, the green energy transition will remain a luxury for the rich. To succeed, the 2026 policy must find a balance where it protects local industry without making the “cost of living” impossible for the average consumer.

What’s Being Said

• “Protective tariffs for locally refined products are vital for investment security and energy stability,” stated Dr. Muda Yusuf, CEO of CPPE.
• Manufacturing groups are applauding the 70% levies on finished imports, calling it a “survival lifeline” for Nigerian factories.
• E-hailing drivers have complained that the 40% tariff on small cars is killing the gig economy and preventing young people from finding work.
• Market analysts warn that “green taxes” on imported vehicles might be premature if local assembly plants aren’t yet ready to fill the demand.

What’s Next

• A formal review of the vehicle tariff lines may be considered by the Ministry of Finance following the CPPE’s public advocacy.
• Local assembly plants (SKD and CKD) are expected to see a surge in interest if the proposed 0-5% duty on parts is adopted.
• Solar equipment prices could drop by late 2026 if the government grants the requested VAT waivers for batteries and inverters.
• Refinery investment may fluctuate in the coming months as stakeholders wait to see if the government provides the “fiscal shield” the CPPE is calling for.

Bottom Line

The 2026 Fiscal Policy is a powerful engine for industrialization, but the CPPE believes it needs better “steering” in the petroleum and transport sectors. By lowering the barriers to mobility and renewable energy, the government can turn a “bold step” into a giant leap for the Nigerian economy.

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