The Centre for the Promotion of Private Enterprise (CPPE) has urged the Federal Government to reduce import duties on renewable energy equipment to 5% and grant a full Value Added Tax (VAT) waiver to address Nigeria’s energy challenges.

This recommendation was detailed in a policy brief reviewing the 2026 Fiscal Policy Measures and Tariff Amendments. The CPPE highlighted concerns over the high cost of solar batteries and inverters, stating that current pricing remains prohibitive for most households and small businesses, thereby limiting access to reliable and clean energy alternatives.

The think tank emphasized that lowering tariffs on renewable energy components would significantly improve access to alternative power solutions and enhance productivity. The CPPE specifically stated, “Import duty on these products should be reduced to 5%, with a full VAT waiver to make clean energy more accessible.”

The organization noted that the high costs of solar batteries and inverters continue to restrict adoption among households and small enterprises. Beyond solar equipment, the CPPE also recommended reducing import duties on mass transit buses to 5% with a full VAT waiver to encourage private sector investment in public transportation.

Furthermore, CPPE proposed capping tariffs on used passenger vehicles (2000cc and below) at 25%. The group argued that current rates exceeding 50% place a heavy burden on the middle class and hinder growth in the e-hailing and logistics sectors. The organization maintained that these proposed measures would ease cost pressures, improve mobility, and support broader economic activity.