Nigeria’s Federal Government has announced a significant reduction in import duties on various goods, including mass transit buses, electric vehicles, and manufacturing machinery. This initiative is part of new fiscal measures aimed at alleviating economic pressure on citizens and businesses. The waiver was disclosed by Dada Olusegun, Special Assistant to the President on Social Media, following President Bola Ahmed Tinubu’s directive to economic officials to devise interventions in response to rising fuel prices and the ongoing crisis in the Middle East.
The administration asserts that this policy is intended to lower inflation, support local industries, and enhance affordability for consumers. Under the new framework, import duties on electric vehicles have been reduced from 5% to zero. Additionally, mass transit buses have been granted a full exemption to promote cleaner and more affordable public transportation. Duties on manufacturing machinery have been entirely eliminated to decrease production costs and foster industrial growth.
Other adjustments include reductions in import duties on raw cane sugar, which has decreased from 70% to 55–57.5%, and crude palm oil, which has been lowered from 35% to 28.75%. Passenger vehicles now face a reduced duty of 40%, down from 70%. Furthermore, bulk rice duties have been cut from 70% to 47.5%, and broken rice duties have been reduced from 70% to 30%. Tariffs on steel sheets and coils have been lowered from 45% to 35%, while those on glazed ceramic tiles have decreased from 55% to 46.25%.
To facilitate a smooth transition, a 90-day period starting April 1 has been introduced, allowing markets to adapt gradually and avoid sudden shocks. These measures come amid heightened global oil price volatility, exacerbated by the Israel–US–Iran conflict, which has disrupted shipping through the Strait of Hormuz—a critical chokepoint for approximately 20% of the world’s crude supply. Oil prices surged above $120 a barrel at the peak of the conflict but dipped below $95 following a ceasefire announcement in early April. However, renewed tensions, including a US blockade order by President Donald Trump, caused prices to rise again, with Brent crude exceeding $102 and West Texas Intermediate reaching $104.16 on April 13.
Nigeria, which heavily relies on fuel imports and is vulnerable to fluctuations in global energy prices, has experienced these price swings straining household budgets and business operations. The government states that the duty waivers are designed to cushion these adverse effects while simultaneously supporting domestic manufacturing and infrastructure development.
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