By ebosele@hotmail.com
Nigeria’s crude palm oil market is set for a shift following the Federal Government’s approval of new fiscal policy measures that reduce the import duty on the commodity to 28.75 percent.
The revised tariff, announced in a circular dated April 1, 2026, and signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, forms part of the 2026 Fiscal Policy Measures (FPM), which replaces the 2023 framework.
Under the new regime, the import adjustment tax (IAT) on crude palm oil has been lowered from 35 percent.
City Business News reports that the development has raised concerns among local producers who fear increased competition from imports.
The government explained that the broader tariff review covers 127 items, with reduced import duty rates designed to stimulate growth in key sectors of the economy.
While the policy offers relief to importers and processors, analysts note that its impact on domestic palm oil production will depend on complementary measures to support local farmers and processors.
“The lower tariff may improve availability in the short term, but it could discourage local investment if not balanced with incentives for domestic producers,” an industry analyst said.
The policy also introduces a 90-day grace period for importers who had opened Form ‘M’ before April 1, allowing them to clear goods under the previous tariff regime.
Beyond crude palm oil, several other commodities also saw duty reductions, including rice, sugar, and selected industrial inputs, as part of efforts to moderate inflation and enhance economic productivity.
Meanwhile, the government indicated that a new excise duty regime and green tax surcharge will take effect from July 1, 2026, signaling further adjustments in the fiscal landscape.
For stakeholders in the palm oil value chain, the new tariff structure presents a mixed outlook—offering immediate cost relief for processors and consumers, while raising fresh questions about the long-term competitiveness of Nigeria’s domestic palm oil industry.
