Nigeria Approves Sweeping Tariff Reforms to Boost Growth and Ease Import Costs
The Nigerian government has approved a major overhaul of its fiscal policy, replacing the 2023 Fiscal Policy Measures with a new framework designed to stimulate economic growth and support key industries. The 2026 Fiscal Policy Measures (FPM), signed by Finance Minister Wale Edun, introduce significant changes to import tariffs across 127 product categories, including food staples, vehicles, and industrial inputs.
The revised policy reduces import duties on several critical goods. Rice imports in bulk or packages over 5kg will now attract a 47.5% tariff, down from 70%, while broken rice duties fall to 30%. Sugar products see similar cuts, with raw cane sugar dropping to 55% and refined sugar to 57.5%. Industrial inputs such as zinc-coated and aluminum-coated steel sheets, as well as hot-rolled steel bars, also benefit from reduced tariffs aimed at lowering production costs for manufacturers.
In the automotive sector, fully built passenger vehicles, including four-wheel drives and station wagons, will be subject to a 40% tariff, a substantial reduction from the previous 70%. The government has also introduced a 90-day grace period for importers who opened Form ‘M’ before April 1, allowing them to clear goods at old rates.
Additional measures include a new excise duty regime and a green tax surcharge, both set to take effect from July 1, 2026. However, certain categories—such as vehicles under 2000cc, mass transit buses, electric vehicles, and locally manufactured vehicles—are exempt from the green tax.
The reforms also extend to essential goods and services. Antimalarial medicines will carry a 20% duty, while breathing appliances and gas masks are exempt. Railway locomotives, cargo ships over 500 tonnes, and agricultural machinery will enter duty-free, supporting infrastructure and food security goals.
The government says the changes aim to balance revenue generation with economic stimulation, reduce the cost of critical imports, and bolster local industries. These measures are expected to ease inflationary pressures on essential goods while promoting industrial competitiveness and investment in Nigeria’s economy.
