CPPE  Urges FG  To  Reduce Solar Costs, Says High Prices  Slowing Energy Transition

Nigeria’s slow shift to clean energy is now facing a major economic barrier, as the Centre for the Promotion of Private Enterprise, CPPE, has called on the Nigerian government to cut import duties on solar equipment and remove value added tax to make renewable energy more accessible.

In its latest policy review of the 2026 fiscal measures, the think tank made it clear that the current cost of solar batteries and inverters is shutting out the very households and small businesses that need alternative power the most. As grid electricity remains unreliable, many Nigerians are willing to switch, but the entry cost remains too high.

“Import duty on these products should be reduced to 5%, with a full VAT waiver to make clean energy more accessible,” the CPPE stated, stressing that price remains the biggest obstacle to wider adoption.

This intervention comes at a critical time. Across Nigeria, energy costs continue to rise, driven by fuel price volatility and weak electricity supply. As a result, businesses are spending more to stay operational, while households are forced to juggle between diesel, petrol and limited grid power. Solar should provide relief, but instead, upfront costs have turned it into a luxury for many.

The CPPE argued that reducing tariffs would immediately lower the cost of solar systems, expand access, and improve productivity across key sectors. Once businesses spend less on energy, they can redirect resources into growth, employment, and service delivery. In the same vein, households would see a direct reduction in monthly energy expenses.

Beyond solar, the group extended its recommendations to the broader transport and mobility space. It proposed that import duties on mass transit buses be reduced to 5% with a full VAT waiver to attract private investment and ease urban transportation pressure. At the same time, it called for a tariff cap of 25% on used vehicles with engine capacity of 2000cc and below, noting that current rates above 50% are squeezing the middle class and slowing down sectors like logistics and ride-hailing.

These proposals come shortly after the Federal Government introduced new fiscal measures that took effect in April 2026. The reforms include an Import Adjustment Tax on 192 tariff lines and revised duties under the ECOWAS Common External Tariff framework. While the government aims to balance revenue generation with economic growth, CPPE believes gaps remain, particularly in how policies affect energy access and affordability.

The group also pointed out that while the government is encouraging local production, there is still no clear tariff protection for locally refined petroleum products, despite heavy private sector investment. According to CPPE, this gap could weaken investor confidence and limit the country’s ability to strengthen its energy security.

At the centre of the argument is a simple economic reality: energy drives everything. When power is expensive, production costs rise, transport becomes costly, and inflation spreads across the economy. By contrast, cheaper and more accessible solar energy could stabilise costs, especially for small businesses that form the backbone of Nigeria’s economy.

However, policy direction will determine the outcome. Cutting import duties and removing VAT on solar components would send a strong signal that Nigeria is serious about its energy transition. It would also align with broader environmental goals, as cleaner energy reduces emissions and dependence on fossil fuels.

What CPPE is pushing for is not just a fiscal adjustment, but a strategic shift. If implemented, these measures could lower the barrier to entry for renewable energy, reduce pressure on households, and create a more stable economic environment.

For now, the message is clear: without deliberate cost-cutting policies, solar energy will remain out of reach for many Nigerians, and the country risks missing a key opportunity to fix both its power crisis and rising cost of living at the same time.