The Centre for the Promotion of Private Enterprise (CPPE) has urged the Nigerian government to reduce the import duty on mass transit buses to five percent and to grant a full VAT waiver. This recommendation is part of a broader effort to alleviate the rising transportation costs that many citizens are currently facing. In a statement released on Sunday by its Chief Executive Officer, Dr. Muda Yusuf, the economic think-tank emphasized that these measures would encourage private sector participation in mass transit and provide much-needed relief for commuters struggling with high transport expenses.
CPPE argued that lowering the import duty and eliminating VAT on mass transit vehicles would incentivize private investment in public mobility systems. This, in turn, could prompt employers and public institutions to offer transportation options for their staff, as well as stimulate government investment in public transport infrastructure. The statement highlighted the potential benefits: “In response to rising transportation costs, CPPE recommends reducing import duty on mass transit buses to 5% and granting a full VAT waiver. 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.”
Additionally, the group called on the Federal Government to enhance fiscal protection for domestic refineries, including the Dangote Refinery, to support growth in Nigeria’s petroleum sector amid global crude price volatility caused by geopolitical tensions in the Middle East. CPPE pointed out that local refineries currently operate without meaningful tariff protection, which it described as a significant policy gap compared to other industrial sectors. The organization argued that implementing protective tariffs on locally refined petroleum products is essential for safeguarding existing investments, promoting 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. It noted that domestic refineries currently operate with virtually no tariff protection, highlighting an evident policy gap when compared to other segments of the industrial sector. Therefore, instituting protective tariffs for locally refined petroleum products is critical for safeguarding these investments and ensuring macroeconomic stability.
These recommendations come at a time when Nigerians are experiencing increasing economic pressures, with transportation costs representing a significant portion of household expenditure. CPPE’s proposals aim to alleviate these pressures while simultaneously promoting investment in critical infrastructure and local industry.
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