The Centre for the Promotion of Private Enterprise (CPPE) has urged the Nigerian government to cut import duty on mass transit buses to five percent and grant a full VAT waiver, as part of efforts to ease rising transportation costs across the country.
In a statement issued on Sunday by its Chief Executive Officer, Dr. Muda Yusuf, the economic think-tank said the measures would encourage private sector participation in mass transit and provide relief for commuters grappling with high transport expenses.
CPPE noted that reducing the import duty and removing VAT on mass transit vehicles would incentivize private investment in public mobility systems, prompt employers and public institutions to offer staff transportation, and stimulate government investment in public transport infrastructure.
“In response to rising transportation costs, CPPE recommends reducing import duty on mass transit buses to 5% and granting a full VAT waiver,” the statement read. “This would incentivize private sector investment in mass transit, encourage employers and public institutions to provide staff transportation, and stimulate government investment in public mobility. The overall effect would be to ease the burden of high transport costs on citizens.”
The group also called on the Federal Government to strengthen fiscal protection for domestic refineries, including the Dangote Refinery, to support growth in Nigeria’s petroleum sector amid global crude price volatility triggered by geopolitical tensions in the Middle East.
CPPE highlighted that local refineries currently operate without meaningful tariff protection, describing the situation as a major policy gap compared to other industrial sectors. It argued that instituting protective tariffs on locally refined petroleum products is critical to safeguarding existing investments, deepening backward integration, enhancing energy security, conserving foreign exchange, and reinforcing economic resilience.
“There is a compelling case for strengthening fiscal protection for investments in domestic petroleum refining to consolidate recent gains and catalyze new capital inflows into the sector,” CPPE stated. “Currently, domestic refineries operate with virtually no tariff protection—an evident policy gap when compared to other segments of the industrial sector. Instituting protective tariffs for locally refined petroleum products is therefore critical to safeguarding these investments, deepening backward integration, enhancing energy security, conserving foreign exchange, and reinforcing economic resilience and macroeconomic stability.”
The recommendations come as Nigerians continue to face mounting economic pressures, with transportation costs forming a significant part of household expenditure. CPPE’s proposals aim to ease these pressures while promoting investment in critical infrastructure and local industry.
