The Federal Government of Nigeria has approved a new set of fiscal policy measures for 2026, introducing wide-ranging reductions in import tariffs on essential goods such as vehicles, rice, palm oil, sugar, and industrial materials. The move is designed to boost economic activity, support local industries, and reshape trade conditions across key sectors.
The policy was outlined in a circular signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and it replaces the previous 2023 fiscal framework.
Under the updated tariff structure covering 127 items, import duties on fully built passenger vehicles, including SUVs and station wagons, have been reduced to 40 percent from 70 percent. Food imports also saw adjustments, with bulk rice now set at 47.5 percent, broken rice at 30 percent, crude palm oil at 28.75 percent, and raw sugar ranging between 55 and 57.5 percent. Refined salt duties were also revised to 55 percent.
Industrial and construction inputs were affected as well, with reduced tariffs on steel products such as rods and zinc-coated sheets set around 35 percent, while certain low-carbon cold-rolled steel now attracts 15 percent duty.
To further encourage industrial expansion, the government has introduced zero import duty on agricultural and industrial machinery, cargo ships, railway locomotives, and breathing equipment. Importers who made transactions before April 1 will benefit from a 90-day grace period to clear goods under the old rates.
A new excise duty structure and a green tax surcharge are scheduled to begin in July 2026. However, exemptions have been granted for smaller vehicles under 2000cc, mass transit buses, electric vehicles, and locally assembled auto parts, signaling a shift toward cleaner transport and domestic production.
