The Centre for the Promotion for Private Enterprise (CPPE) said Nigeria's 2026 fiscal policy measures indicate a strategic pivot toward boosting domestic production and industrialisation. In a policy brief released on Sunday, CPPE Chief Executive Officer Muda Yusuf stated the framework includes tariff adjustments across 192 lines, reduced duties on industrial inputs, and a National List of 127 items eligible for tariffs between zero and 10 per cent. The policy raises combined import duties on finished goods such as food, textiles, plastics and metal products to between 20 and 70 per cent, aiming to make locally produced alternatives more competitive. Lower tariffs on machinery and intermediate goods are expected to reduce manufacturing costs and stimulate investment in sectors like agro-processing, light manufacturing, packaging and basic metals. The CPPE described the combination of higher tariffs on finished imports and lower duties on inputs as evidence of policy coherence toward industrialisation. However, businesses dependent on imports may face higher costs, squeezed profit margins and operational disruptions. The centre noted limited fiscal protection for Nigeria's domestic petroleum refining sector despite recent investments in local capacity. It recommended protective tariffs on locally refined petroleum products to attract further investment and reduce foreign exchange pressure. The CPPE also called for a review of high import duties on used vehicles, which exceed 50 per cent with additional charges, suggesting they could hinder transportation access and impact ride-hailing employment. It proposed tax waivers and lower duties on mass transit vehicles and renewable energy equipment to reduce energy and transport costs. Investors were advised to shift focus toward local manufacturing, value-chain integration and production-oriented ventures to align with the government's industrial goals.
Muda Yusuf of CPPE highlights rising tariffs on finished imports while noting unchanged high duties on used vehicles, creating a contradiction for low-income commuters and ride-hailing drivers. The policy favours local manufacturing but simultaneously restricts affordable transportation options for Nigerians who rely on imported vehicles. Lowering tariffs on industrial inputs benefits producers, yet the same support is absent for sectors like mass transit and renewable energy despite the proposal. Businesses dependent on imports face risks, but the state's own refining sector remains exposed without protective tariffs.
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