The Centre for the Promotion of Private Enterprise (CPPE) has proposed a set of economic measures aimed at addressing rising transportation costs and strengthening Nigeria’s domestic refining sector.
In a statement issued on Sunday by its Chief Executive Officer, Muda Yusuf, the organization called on the Federal Government to significantly reduce import duty on mass transit buses to five percent, alongside granting a full Value Added Tax (VAT) waiver.
According to CPPE, these measures would make it easier for private investors to participate in the mass transit sector, while also easing the financial burden currently faced by commuters across the country.
The think tank noted that improved access to affordable transportation could stimulate broader economic activity, encourage employers to provide transport for staff, and support government efforts to expand public mobility systems.
“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.
Beyond transportation, CPPE also raised concerns about the challenges facing Nigeria’s local refining industry, particularly in the context of global crude oil price fluctuations linked to geopolitical tensions.
The group urged the government to introduce stronger fiscal protection for domestic refineries, including the Dangote Refinery, noting that the sector currently operates without sufficient tariff safeguards.
It described this lack of protection as a policy gap, especially when compared with other industrial sectors that benefit from structured support mechanisms.
According to CPPE, introducing protective tariffs on locally refined petroleum products would play a key role in preserving existing investments while encouraging new capital inflows into 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.
Overall, the organization maintained that a combination of transport-focused relief measures and targeted support for local industries would help strengthen Nigeria’s economy and improve living conditions for citizens.
