By Ola Kay
The Federal Government of Nigeria has approved new 2026 fiscal policy initiatives to being about significant tariff reductions on key imports, including vehicles, rice, palm oil, and sugar, in order to bolster economic growth and support critical sectors.
A report by The Nation referenced a circular signed by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, with the government stating that the new policy framework replaces the 2023 fiscal guidelines.
Central to the reform is a revised national tariff schedule covering 127 items. Particularly, import duties on fully built passenger vehicles, including four-wheel drives and station wagons, have been reduced to 40 percent from the previous 70 percent rate established under the 2015 policy.
According to the report, the fiscal policy also introduced reductions on essential food imports. Bulk rice tariffs dropped to 47.5 percent from 70 percent, while broken rice is now set at 30 percent. Crude palm oil imports will attract an effective duty of 28.75 percent, and raw sugar tariffs now range between 55 and 57.5 percent, both reflecting cuts from earlier rates. Additionally, tariffs on refined salt have been adjusted to 55 percent, while industrial and construction materials such as ceramic tiles and steel products now attract lower duties. Steel items, including zinc-coated sheets and rods, are largely pegged at 35 percent, while cold-rolled steel with low carbon content is set at 15 percent. To encourage industrial growth, the government approved zero import duties on agricultural and industrial machinery, cargo ships, railway locomotives, and breathing equipment. Importers who initiated transactions before April 1 have been granted a 90-day grace period to clear goods under the old rates. A new excise duty regime and green tax surcharge will take effect from July 1, 2026.
The report added that vehicles below 2000cc, mass transit buses, electric vehicles, and locally manufactured auto components are exempted, signaling a policy shift toward cleaner transportation and domestic production.
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