The Centre for the Promotion of Private Enterprise (CPPE) has said the Federal Government’s 2026 fiscal policy measures will significantly reshape Nigeria’s economy by favouring local production while putting pressure on import-dependent businesses.
In a policy statement issued on Sunday, April 19, CPPE Chief Executive Officer, Dr Muda Yusuf, said the new tariff and tax changes signal “a decisive and strategic shift” towards industrialisation and reducing reliance on imports.
According to him, the policy includes higher import taxes on finished goods, lower tariffs on industrial inputs, and new measures such as a green tax on certain imported vehicles.
He said, “The policy framework signals a decisive and strategic pivot towards strengthening domestic production, deepening industrialisation, and reducing import dependence.”
The think tank noted that tariffs on many imported finished goods—including food, textiles, plastics and metal products—have been raised to between 20 per cent and 70 per cent. This, it said, will make imports more expensive and give locally made goods a competitive edge.
“The measure raises the landing cost of imports and strengthens the competitive position of domestic producers,” Yusuf said.
He explained that this would encourage investors to expand local manufacturing, invest in industries that replace imports, and source more raw materials within Nigeria.
At the same time, the government has reduced tariffs on key production inputs such as machinery, chemicals, and intermediate goods. A special list of 127 items will now attract lower tariffs of between zero and 10 per cent.
Yusuf said this move is aimed at lowering production costs and helping Nigerian manufacturers compete better.
“The policy coherence—higher tariffs on finished goods alongside lower tariffs on inputs—clearly signals a structured industrialisation pathway,” he added.
However, the CPPE warned that businesses that rely heavily on imports will face serious challenges under the new policy.
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It stressed that higher import costs are expected to reduce profit margins, increase working capital needs, and force many firms to rethink their business models.
“Import-dependent sectors face structural transition risks as the economy pivots towards production,” Yusuf said.
He also raised concerns about the lack of strong protection for Nigeria’s petroleum refining sector, noting that local refineries currently enjoy little or no tariff support.
The CPPE called on the government to introduce protective tariffs for locally refined petroleum products to encourage investment and reduce pressure on foreign exchange.
On transportation, the group criticised the high tariffs on used vehicles, saying they are too expensive for many Nigerians. It recommended cutting the total tax burden on such vehicles to a maximum of 25 per cent.
“The current tariff has significant welfare and employment implications,” Yusuf said, warning that it limits access to vehicles and affects jobs in sectors like ride-hailing and car hire.
The organisation also urged the government to lower duties on mass transit buses and renewable energy equipment such as batteries and inverters to ease transport and energy costs for citizens and businesses.
It stressed that the policy marks a clear shift in Nigeria’s economic direction.
“The overarching message is clear: Nigeria is deliberately transitioning from an import-dependent economy to one anchored on domestic production and value addition,” Yusuf said.
He advised investors to adjust by focusing more on production, local sourcing, and industries that align with government priorities.
The CPPE added that while the policy offers strong opportunities for manufacturers and industrial investors, it will be challenging for traders and import-based businesses, making adaptation critical in the coming years.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X