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The Centre for the Promotion of Private Enterprise (CPPE) has called on the Nigerian government to reduce import duty on mass transit buses to five percent and grant a full VAT waiver as part of measures to ease rising transportation costs across the country.
Also, CPPE urged the Federal Government to provide fiscal protection to support Dangote Refinery and other local refineries amid the global crude price volatility caused by the Iran-United States-Israel war.
CPPE made the call in a statement issued on Sunday by Chief Executive Officer, Dr. Muda Yusuf.
CPPE said the measures would encourage private sector participation in mass transit and ease the burden on commuters.
CPPE noted that the policy would not only improve access to affordable transportation but also boost investments in public mobility systems, ultimately providing relief for Nigerians grappling with high commuting expenses.
“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,” the economic think-tank said.
The group also urged the Federal Government to strengthen fiscal protection for domestic refineries, including the Dangote Refinery, to support growth in the petroleum sector.
CPPE noted that local refineries in Nigeria currently operate without meaningful tariff protection, describing the situation as a major policy gap compared to other industrial sectors.
According to CPPE, instituting protective tariffs on locally refined petroleum products is critical to safeguarding existing investments and encouraging further growth in the sector.
“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.
“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,” CPPE stated.
Transport cost: Cut import duty on buses to 5% — CPPE tells Nigerian Govt
