The Federal Government of Nigeria has approved the implementation of the 2026 Fiscal Policy Measures, introducing significant revisions to import tariffs aimed at stimulating growth across key economic sectors. The new policy, signed by Minister of Finance Wale Edun on April 1, 2026, replaces the 2023 framework and adjusts duties on 127 tariff lines, including rice, sugar, vehicles, and industrial inputs.
A major change involves the Import Adjustment Tax on crude palm oil, reduced to 28.75 percent from previous higher rates. In the automotive sector, tariffs on fully built passenger vehicles, including four-wheel drives and station wagons, have been lowered to 40 percent from 70 percent under the 2015 policy. To ease the transition, a 90-day grace period has been granted for importers who opened Form ‘M’ before April 1, allowing clearance at old rates.
The policy also introduces a new excise duty regime and a green tax surcharge, both set to take effect from July 1, 2026. Key tariff adjustments include a reduction in rice duties to 47.5 percent (from 70 percent), wheat flour to 70 percent, and refined salt to 55 percent (from 70 percent). Industrial inputs such as zinc-coated steel sheets now attract 35 percent duty, down from 45 percent, while machinery and certain vehicles remain exempt from the green tax.
The government says the reforms aim to balance revenue generation with economic stimulation, supporting local industries and easing the cost of critical imports. Exemptions from the green tax include vehicles below 2000cc, mass transit buses, electric vehicles, and locally manufactured vehicles under specified headings.
These measures form part of Nigeria’s broader strategy to enhance competitiveness, protect domestic production, and foster sustainable economic growth.
