The Federal Government of Nigeria has approved significant reductions in import duties on several key items, including rice, vehicles, and 127 other tariff lines, as part of its 2026 fiscal policy measures. The move aims to promote and stimulate growth in critical sectors of the economy, according to Minister of Finance Wale Edun. ¹ ² ³
The new policy reduces import duties on rice (in bulk or packing >5kg) from 70% to 47.5%, and broken rice from 70% to 30%. Crude palm oil now attracts a 28.75% import adjustment tax, down from 35%. Fully built passenger vehicles, four-wheel drive motor vehicles, and station wagons now attract a total effective tariff of 40.
Other items affected by the reduction include anti-malarial medications (20%), crude palm oil (28.75% from 35%), and raw cane sugar (55% from 70%). Agriculture and manufacturing machinery now attract 0% duty, while railway locomotives and cargo ships over 500 tonnes are also exempt.
The policy includes a 90-day grace period for importers who opened Form ‘M’ before April 1, allowing them to clear goods at prevailing rates. However, a new excise duty regime and green tax surcharge will take effect from July 1, 2026.
The reductions are expected to ease costs across sectors and promote economic growth. The government has identified critical sectors that will benefit from the adjustments, although specific details are not yet available.
The move has been welcomed by businesses and consumers, who anticipate reduced prices for essential goods. However, some have expressed concerns about the potential impact on local industries and revenue generation.
Would you like to know more about the specific tariff lines affected or the potential impact on the Nigerian economy?
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