Policy seen boosting manufacturing and industrial growth, as experts call for refinements in auto, energy and refining sectors…..
The Centre for the Promotion of Private Enterprise has described the Federal Government’s 2026 fiscal policy measures and tariff amendments as a strategic shift towards domestic production, industrialisation and reduced import dependence.
In its review of the new framework, the Chief Executive Officer of CPPE, Muda Yusuf, said the policy direction aligns with Nigeria’s medium-term economic transformation goals but presents a mix of opportunities and risks for investors.
The measures include revisions to the Import Adjustment Tax across 192 tariff lines, selective import restrictions, tariff cuts on key industrial inputs, excise duty adjustments and the introduction of a green tax on certain imported vehicles. A National List of 127 items mainly intermediate goods has also been introduced, attracting concessional tariffs of between zero and 10 percent to support manufacturing competitiveness.
CPPE noted that higher tariffs on imported finished goods, including food, plastics, textiles and metal products, with combined rates ranging from 20 to 70 percent, would raise import costs and strengthen the position of local manufacturers.
The group said this creates strong incentives for investment in domestic production, backward integration and import substitution, particularly in sectors such as agro-processing, light manufacturing, packaging and basic metals. It added that the policy could improve capacity utilisation across manufacturing industries and enhance pricing power for local firms.
At the same time, reduced tariffs on machinery, chemicals and other industrial inputs are expected to lower production costs and support value-chain development, reinforcing Nigeria’s industrialisation drive.
However, CPPE warned that the policy would pose significant challenges for import-dependent businesses, especially those involved in trading and wholesale distribution. Higher tariffs are expected to increase costs, compress margins and force a restructuring of business models.
The group also expressed concern over what it described as a relatively soft fiscal stance on petroleum product imports, arguing that stronger protection is needed to support recent investments in domestic refining and consolidate progress towards energy self-sufficiency.
Among its recommendations, CPPE called for the introduction of protective tariffs for locally refined petroleum products to safeguard investments, strengthen backward integration and reduce pressure on foreign exchange.
It also urged a review of the current tariff regime on used vehicles, noting that duties exceeding 50 percent place a heavy burden on consumers in a country heavily reliant on road transport. The group recommended reducing tariffs on such vehicles to a maximum of 25 percent.
To support local automobile assembly, CPPE proposed lower tariffs on Semi Knocked Down and Completely Knocked Down parts, alongside measures to boost the competitiveness of the sector.
In addressing rising transportation costs, the group advocated a reduction in import duties on mass transit buses to five percent, combined with a full VAT waiver, to encourage investment in public transportation and ease mobility challenges.
It further recommended lower tariffs and VAT waivers on renewable energy equipment such as batteries and inverters to improve access to alternative power sources for households and businesses.
According to CPPE, the overall message from the policy framework is clear: Nigeria is transitioning from an import-driven economy to one anchored on production and value addition.
The group advised investors to realign their strategies by focusing on local production, strengthening supply chains, targeting priority sectors and building flexibility to adapt to evolving tariff structures.
CPPE concluded that while the reforms offer significant growth opportunities in manufacturing, agriculture and green industries, success will depend on how well investors adjust to the country’s shifting economic landscape and policy direction.
