In a landmark move to combat inflation and stimulate industrial activity, the Federal Government of Nigeria has announced a sweeping reduction in import duties across several critical sectors.
The 2026 Fiscal Policy Measures, outlined in a circular signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, effectively replaces the 2023 guidelines and introduces significant tariff cuts on everything from passenger vehicles to staple foods.
The most notable change for many Nigerians is the sharp reduction in duties for fully built passenger vehicles (including SUVs and station wagons). Old Rate: 70%, New Rate: 40%
In a move to encourage domestic manufacturing and sustainability, the government has exempted electric vehicles, mass transit buses and locally manufactured auto components from these new excise duties.
To address food security and the rising cost of living, the 2026 policy slashes tariffs on essential commodities.
Commodity new tariff rate will include bulk rice 47.5% 70%, broken rice 30%, crude palm oil 28.75% variable, raw sugar 55% – 57.5% higher varied rates etc.
The government is doubling down on “Made in Nigeria” by making it cheaper to import the tools of production. The policy grants zero import duties on agricultural and industrial machinery, cargo ships and railway locomotives and medical breathing equipment.
Construction materials also saw adjustments; steel products such as zinc-coated sheets are now pegged at 35%, while specialized cold-rolled steel sits at a low 15%.
The government has provided a window for businesses to adjust to the new landscape:
Grace Period: Importers who began transactions before April 1 have 90 days to clear goods under the old rates.
As for the new taxes, a new excise duty regime and a “Green Tax” surcharge are scheduled to take effect on July 1, 2026.
“This policy framework is designed to balance the need for revenue with the urgent necessity of making essential goods more affordable for the average Nigerian,” the circular noted.
By lowering the barrier to entry for both food and machinery, the administration aims to cool the heels of inflation while providing the “oxygen” necessary for the country’s industrial sectors to breathe again.
