Nigeria’s Renewable Energy Association of Nigeria (REAN) is calling on the government to abolish the VAT on all Distributed Renewable Energy Products (DREP) in the country.
Segun Adaju, president of REAN, in a statement said zero VAT would help accelerate growth of Nigeria’s renewable market. While the government has approved a reduction on import duties on items in various sectors and a zero import duty for machinery and equipment used in some sectors like the power sector, items used in the renewable energy sector are still subject to import duties.
Adaju said zero VAT for DREP like batteries, charge controllers, inverters and the implementation of the approved low tariff on other renewable components would promote in-country assembly of DREP in Nigeria.
He said it was important that Nigeria considered the adoption of a zero VAT administration like other African countries, noting that the acceptance would boost job creation for prospective investors in the sector.