The Federal Government of Nigeria has approved new 2026 fiscal policy measures, introducing significant import duty cuts on key goods. This move slashes tariffs on vehicles, rice, palm oil, and sugar to stimulate economic growth and support critical sectors.
In a circular signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the government announced that the new policy framework replaces the 2023 fiscal guidelines.
Revised National Tariff Schedule
At the core of the reform is a revised schedule covering 127 items. A major vehicle tariff reduction is a highlight of the plan. Duties on fully built passenger vehicles, including four-wheel drives, have dropped to 40 percent. This is a sharp fall from the previous 70 percent rate set in 2015.
Food imports also see relief. Bulk rice tariffs dropped to 47.5 percent from 70 percent. Broken rice is now set at 30 percent. Crude palm oil will attract a duty of 28.75 percent. Raw sugar tariffs now range between 55 and 57.5 percent. All these figures reflect cuts from earlier rates.
Industrial and Construction Relief
The policy extends to materials for building and manufacturing. Refined salt is now 55 percent. Steel items, such as zinc-coated sheets, are largely pegged at 35 percent. Cold-rolled steel with low carbon content is set at 15 percent.
Support for Green Growth and Local Industry
To help industry, the government approved zero duties on:
- Agricultural and industrial machinery
- Cargo ships and railway locomotives
- Breathing equipment
A new excise duty and green tax will start on July 1, 2026. However, some items are exempt. These include electric vehicles and locally made auto components. This signals a shift toward cleaner transport and domestic production.
Importers who started deals before April 1 have a 90-day grace period. They can clear goods under the old rates during this time.
