Nigeria Cuts Import Tariffs On Vehicles, Sugar, Palm Oil In New Fiscal Policy

The Federal Government has introduced new fiscal policy measures for 2026, reducing import tariffs on key goods including vehicles, sugar, and palm oil in a move aimed at stimulating economic growth and easing costs across critical sectors.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, approved the measures, which affect about 30 items and cover 127 tariff lines with revised duty rates.

According to a circular dated April 1, 2026, the new policy replaces the 2023 framework and is designed to boost productivity and support strategic industries. Under the revised structure, import duties on fully built vehicles, including passenger cars and four-wheel drives, have been reduced to 40 per cent from the previous 70 per cent.

Similarly, the import adjustment tax on crude palm oil has been lowered to an effective rate of 28.75 per cent, while tariffs on various sugar products have also been reduced from 70 per cent to between 55 and 57.5 per cent.

The policy also introduces changes to tariffs on staple and industrial goods. For instance, duties on rice have been adjusted, with some categories seeing reductions from 70 per cent, while broken rice now attracts a 30 per cent rate. Other items affected include refined salt, margarine, ceramic tiles, steel sheets, envelopes, and notebooks, all of which have seen downward adjustments.

To ease the transition, the government granted a 90-day grace period for importers who had initiated transactions before April 1, allowing them to clear goods under the previous tariff regime.

However, additional measures, including a new excise duty framework and a green tax surcharge, are scheduled to take effect from July 1, 2026.

The government says the policy reflects a broader strategy to balance revenue generation with economic growth, while improving access to essential goods and supporting local industries.