The Nigerian Government has approved the implementation of the 2026 Fiscal Policy Measures (FPM), introducing sweeping tariff reductions on key imports, including vehicles, crude palm oil, and sugar.
The new measures, contained in a circular dated April 1, 2026, and signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, replace the 2023 fiscal policy framework.
Under the revised regime, a total of 127 tariff lines have been adjusted, with reduced import duties aimed at stimulating growth in critical sectors of the economy.
Notably, the import adjustment tax (IAT) on crude palm oil has been lowered to an effective rate of 28.75 percent, down from 35 percent. Similarly, tariffs on fully built passenger vehicles, including four-wheel drives and station wagons, have been cut to 40 percent from the previous 70 percent under the 2015 policy.
The policy also introduced reductions across several food and industrial products. Rice imports now attract a 47.5 percent duty, while broken rice is pegged at 30 percent, both reduced from 70 percent. Raw sugar tariffs have been lowered to between 55 and 57.5 percent, and refined salt now carries a 55 percent duty.
In the manufacturing sector, duties on steel products such as zinc-coated sheets, aluminium-coated coils, and steel rods have been reduced to 35 percent, while cold-rolled steel is set at 15 percent. Import duties on agricultural and manufacturing machinery have been cut to zero percent to support local production.
Other items affected include ceramic tiles, envelopes, notebooks, and electrical components, all of which saw downward adjustments in tariff rates.
To ease the transition, the government granted a 90-day grace period for importers who had opened Form ‘M’ before April 1, allowing them to clear goods at previous rates.
However, authorities indicated that a new excise duty regime, alongside a green tax surcharge, will take effect from July 1, 2026. Exemptions from the green tax include vehicles below 2000cc, mass transit buses, electric vehicles, and locally manufactured vehicles.
The government said the revised tariff structure is designed to reduce costs, improve access to essential goods, and enhance industrial productivity, while maintaining a balance between supporting local industries and encouraging trade.
