The Federal Government has approved the implementation of the 2026 Fiscal Policy Measures, introducing sweeping tariff reductions across 127 items covering vehicles, food imports, steel and construction materials, industrial machinery, medical equipment, and electrical components in what represents the most comprehensive overhaul of Nigeria’s import duty regime since the 2015 fiscal policy.
The new measures, contained in a circular dated April 1, 2026, and signed by Minister of Finance and Coordinating Minister of the Economy, Wale Edun, supersede the 2023 Fiscal Policy Measures and are designed to stimulate growth across critical sectors of the economy while supporting local industries and easing the cost of essential imports.
Among the most significant changes, import duties on fully built passenger vehicles have been slashed from 70 per cent to 40 per cent, bulk rice tariffs have been reduced from 70 per cent to 47.5 per cent, and agricultural and industrial machinery will now attract zero import duty down from five per cent.
A new excise duty regime and green tax surcharge will take effect from July 1, 2026, though electric vehicles, mass transit buses, and vehicles below 2000cc engine capacity are exempted.
Vehicles: 70% To 40%
The most headline-grabbing change is the reduction of import duties on fully built passenger vehicles, including four-wheel drives and station wagons, from 70 per cent to 40 per cent.
The 70 per cent rate, established under the 2015 fiscal policy as part of the government’s attempt to encourage local vehicle assembly, had been widely criticised as making car ownership prohibitively expensive for most Nigerians. The high tariff pushed vehicle prices well beyond the reach of middle-class Nigerians and failed to stimulate meaningful local vehicle production.
The reduction to 40 per cent, while still substantial, represents a significant easing that could lower the cost of imported vehicles and potentially expand the market for new cars.
Food Imports: Significant Reductions
The government introduced notable reductions on essential food imports, addressing cost-of-living concerns at a time when food inflation remains a major burden for Nigerian households.
Bulk rice imports rice in quantities exceeding 5 kilograms now attract a duty of 47.5 per cent, down from 70 per cent. Broken rice duties have been reduced even more dramatically to 30 per cent from 70 per cent.
Raw cane sugar tariffs were cut from 70 per cent to 55 per cent, while cane and beet sugar in powder or granule form was reduced from 70 per cent to 57.5 per cent. Refined salt imports saw a similar reduction to 55 per cent from 70 per cent.
Crude palm oil imports will attract an effective duty of 28.75 per cent, reduced from 35 per cent under the previous regime.
However, wheat or meslin flour tariffs remain unchanged at 70 per cent, reflecting the government’s continued policy of protecting the domestic wheat processing industry.
Zero Duty On Machinery And Equipment
In what the government described as a prioritisation of industrialisation, import duties on several categories of critical equipment were slashed to zero.
Agricultural and manufacturing machinery now attract zero per cent duty, down from five per cent. Cargo ships above 500 tonnes are now duty-free, as are railway locomotives under Semi-Knocked-Down and Completely-Knocked-Down arrangements.
Medical and safety equipment also benefited, with breathing appliances and gas masks now duty-free, while modular surgical operating theatres saw tariffs reduced from 20 per cent to five per cent.
These zero-duty provisions are designed to lower the cost of equipping farms, factories, hospitals, and transport systems — sectors where imported equipment remains essential due to limited domestic manufacturing capacity.
Steel And Construction Materials
What do you think about this?
Drop your opinion in the comment section.
FOLLOW US & Share this with someone who needs to see this.