The Lagos Chambers of Commerce and Industry (LCCI) has called on the Federal Government to stop the import duty and taxes imposed on solar equipment such as batteries and inverters in Nigeria.
The Director-General, LCCI, Muda Yusuf, said that since the issue of power is still prevalent in the country and there is urgent need to encourage every form of alternative sources of power, which in this case is solar.
Yusuf said that clearly that the power sector reform is yet to deliver the desired outcome and as such there is no better time than now to ensure the rapid promotion of renewable energy solutions. This, he said can be done through the enactment of policies that will make it more affordable for the masses.
“The current high cost of acquiring renewable energy installation has been a major impediment to the access of this energy solution. For instance, the costs of solar panels and batteries are very prohibitive.
“I submit that import duty and taxes on solar equipment, solar batteries and inverters should be scrapped to improve access to renewable energy solutions,” Yusuf said.
[READ MORE: Inflation may rise if borders are not opened – LCCI]
Yusuf said that there was diverse internal and external variables that has hampered the achievement of the desired outcomes of the power sector reform.
“Power sector is critical to the development of the country. Most often, there is a conflict between development objectives and commercial objectives. I believe the government still needs to provide some resource support and generous fiscal incentives for investors in the sector because of the economic development and social impact of an improved power sector performance.
“What should be avoided is public sector management of such enterprise. We do not have a record of good corporate governance in most public enterprises,” Yusuf added.
What you should know: In a Punch report, the LCCI DG’s call for Government support in making renewable energy solutions affordable comes shortly after the Senate President, Ahmad Lawan suggested that a state of emergency should be declared in the power sector.
This is also in line with what Dr Joy Ogaji, Executive Secretary, Association of Power Generation Companies said.
According to her, declaring a state of emergency will make the government focus on the power sector and solve the anomalies associated with the sector.
LCCI is on point, tax reliefs should also be extended to importation of agricultural & industrial machineries to encourage investors in these sectors
Nigeria need to get her priorities right