The Nigerian Government has approved sweeping tariff reductions on key imports, including vehicles, rice, palm oil and sugar, as part of its 2026 fiscal policy aimed at stimulating economic growth and supporting critical sectors.
In a circular issued by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the Federal Government confirmed that the new framework replaces the 2023 fiscal guidelines.
At the centre of the reform is a revised tariff schedule covering 127 items. Import duties on fully built passenger vehicles, including SUVs and station wagons, have been cut to 40 per cent from 70 per cent.
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Tariffs on essential food imports were also reduced, with bulk rice now at 47.5 per cent from 70 per cent, and broken rice at 30 per cent. Duties on crude palm oil and raw sugar were similarly lowered, while rates on refined salt, ceramic tiles and selected steel products were adjusted downward.
To boost industrial growth, the government approved zero import duties on agricultural and industrial machinery, cargo vessels and railway equipment.
Importers who began transactions before April 1 have been granted a 90-day grace period to clear goods under the previous rates.
Meanwhile, a new excise duty regime and Green Surcharge will take effect from July 1, 2026, although exemptions have been granted for vehicles below 2000cc, mass transit buses, electric vehicles and locally manufactured auto components, reflecting a push for cleaner transport and local production.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
