The Federal Government has approved sweeping reductions in import tariffs on 127 items as part of its 2026 fiscal policy measures aimed at stimulating economic growth and easing the cost of trade.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, conveyed the new policy in a circular dated April 1, 2026, outlining key adjustments designed to support critical sectors of the economy.
Under the revised framework, about 30 priority items will benefit from downward tariff adjustments, while a broader list of 127 tariff lines will see reduced import duty rates. The policy is expected to provide relief for Nigeria’s import-dependent economy, particularly amid global uncertainties linked to ongoing geopolitical tensions.
Sources at the Federal Ministry of Finance said the move is also intended to improve trade facilitation and address longstanding concerns over inconsistent customs duty charges, which have contributed to delays in cargo clearance at Nigerian ports.
Among the major changes, the import adjustment tax on crude palm oil has been reduced to an effective rate of 28.75 per cent, down from previous higher levels. Import duties on fully built passenger vehicles, including four-wheel drives and station wagons, have also been cut to 40 per cent from 70 per cent under the 2015 fiscal regime.
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In the food category, rice imports recorded significant reductions, with some categories dropping from 70 per cent to as low as 30 per cent. Raw cane sugar tariffs were also reduced to between 55 and 57.5 per cent, while refined salt now attracts 55 per cent, down from 70 per cent.
Other affected items include margarine, envelopes, diaries, ceramic tiles, and zinc-coated steel sheets, all of which saw varying degrees of tariff cuts under the new policy.
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 the previous rates.
However, the circular also introduced new fiscal components, including an excise duty regime and a green tax surcharge, both scheduled to take effect from July 1, 2026.
The government said the measures form part of broader efforts to boost trade, enhance revenue efficiency, and create a more predictable business environment for importers and investors.