The Centre for the Promotion of Private Enterprise (CPPE) said on Sunday that Nigeria’s 2026 fiscal policy framework marks a clear pivot toward local production and industrial growth, though it cautioned that import-reliant businesses could face short-term strain.
In a policy brief released on Sunday, CPPE Chief Executive Officer Muda Yusuf explained that the newly approved measures, which include tariff adjustments and fresh import restrictions, show the Federal Government’s intent to cut import dependence and boost domestic industry.¹
Key Highlights of the 2026 Measures
The framework revises the Import Adjustment Tax across 192 tariff lines and reduces duties on essential industrial inputs. It also introduces a National List of 127 items that will now enjoy concessionary tariffs ranging from zero to 10 per cent.²
According to CPPE, the most notable change is the upward review of tariffs on a broad basket of finished imports. Products such as processed foods, textiles, plastics, and metal goods will now attract combined duties of 20 to 70 per cent. The centre said the move will make imported goods more expensive and give locally made alternatives a stronger competitive edge, which could spur investment in manufacturing and allied industries.³
Potential Winners and Pressure Points
CPPE projects that agro-processing, light manufacturing, packaging, and basic metal sectors stand to gain as higher import costs shift demand toward domestic suppliers. At the same time, lowering tariffs on machinery, spare parts, and intermediate goods should reduce production costs and support factory output.
“The alignment is clear. Higher duties on finished products paired with lower duties on inputs points to a structured path for industrialisation,” the brief stated.
Still, the organisation warned that companies dependent on imports may encounter higher operating costs. Increased tariffs could push up import bills, tighten profit margins, and force many firms to rework their supply and pricing models.
Gaps the CPPE Wants Addressed
The centre flagged what it called inadequate fiscal cover for Nigeria’s domestic petroleum refining industry. Despite recent investments to expand local refining capacity, the new policy offers limited protection for refined products. CPPE recommended protective tariffs on locally refined fuels to attract more investment and ease pressure on foreign exchange reserves.
It also urged a review of duties on used vehicles. Current rates, which exceed 50 per cent once all levies are added, could restrict access to affordable transport and hurt employment in ride-hailing and logistics. To cushion transport and energy costs, CPPE proposed lower import duties and tax waivers for mass transit buses and renewable energy equipment.
Advice to Investors and Businesses
The policy brief advised investors to align with government’s production drive by prioritising local manufacturing, deepening value-chain participation, and backing production-focused projects. While the reforms open opportunities for industries tied to domestic output, the CPPE noted that trading and distribution firms built around imports face real risks.
Overall, the CPPE said the 2026 measures reflect a broader effort to reposition Nigeria’s economy around production. Businesses that fail to adjust, it warned, may find it hard to compete in the new environment.