As part of its drive to grow and strengthen the economy through strategic and targeted downward review of import duties, the Nigerian government has announced reductions in tariffs for 127 key items in critical sectors.
The cut in import duties for these items followed the approval for the implementation of the 2026 fiscal policy measures (FPM). The approval of the FPM is contained in an April 1st circular signed by Wale Edun, the minister of finance and coordinating minister of the economy.
The policy, which the government says will replace the 2023 FPM, includes a national list of 127 tariff lines, including rice, car, and palm oil, with slashed import duty rates designed to bolster “critical sectors of the economy”.
Under the amended tariff regime, the Import Adjustment Tax, IAT, on products like crude palm oil is pegged at a total effective rate of 28.75 per cent, down from higher rates under previous tariff structures.
In the automotive sector, tariffs on fully built passenger vehicles, including four-wheel drives and station wagons, have been reduced to 40 per cent from 70 per cent as stipulated in the 2015 FPM.
The government, to ease transition, has granted a 90-day grace period for importers who had opened Form ‘M’ before April 1 to clear their goods at current rates.
However, a new excise duty regime and the green tax surcharge are set to take effect from July 1, 2026.
Below are some of the key items selected for tariff cut in the gazetted document
1. Anti-malarial medications: 20 per cent
2. Rice (In bulk or packing >5kg): 47.5 per cent (reduced from 70 per cent)
3. Broken rice: 30 per cent (reduced from 70 per cent)
4. Wheat or Meslin flour: 70 per cent
5. Crude palm oil: 28.75 per cent (reduced from 35 per cent)
6. Margarine (excluding liquid): 40 per cent
7. Raw cane sugar (Beet sugar): 57.5 percent (reduced from 70 percent)
8. Raw cane sugar (Other): 55 percent (reduced from 70 percent)
9. Cane/Beet sugar (Powder/Granule): 57.5 percent (reduced from 70 percent)
10. Refined salt (for human consumption): 55 percent (reduced from 70 percent)
11. Envelopes: 40 percent (reduced from 50 percent)
12. Diaries/Notebooks: 30 percent (reduced from 40 percent)
13. Unglazed ceramic tiles: 35 percent (reduced from 40 percent)
14. Glazed ceramic tiles: 46.25 percent (reduced from 55 percent)
15. Ceramic cubes (lt;7cm): 35 percent (reduced from 40 percent)
STEEL BARS AND COILS
16. Zinc-coated steel sheets: 35 percent (reduced from 45 percent)
17. Steel coils (aluminium coated): 35 percent (reduced from 45 percent)
18. Electrolytically plated steel: 35 percent (reduced from 45 percent)
19. Cold-rolled steel (500 tonnes) 0 percent (reduced from 5 percent)
25. Breathing appliances & Gas masks 0 percent (reduced from 5 percent)
26. Agriculture/manufacturing machinery 0 percent (reduced from 5 percent)
27. Modular surgical operating theatre 5 percent (reduced from 20 percent)
28. Air or vacuum pumps/compressors 5 percent (reduced from 10 percent)
29. Automatic circuit breakers 10 percent (reduced from 20 percent)
30. Lamp holders 10 percent (reduced from 20 percent)
ITEMS EXCLUDED FROM GREEN TAX SURCHARGE
1. Vehicles below 2000cc
2. Vehicles of heading 87.02 (mass transit buses)
3. Electric Vehicles
4. Locally manufactured vehicles heading 87.06, 87.07, 87.08, 87.10, 87.11, 87.12, 87.13,
