New measures slash duties across 127 items, boost manufacturing, and introduce green tax from July
The Federal Government has approved a sweeping set of fiscal policy measures for 2026, introducing significant reductions in import tariffs across key sectors of the economy.
In a circular dated April 1, 2026, signed by the Minister of Finance and Coordinating Minister of the Economy,Wale Edun, the government confirmed that the new policy framework replaces the 2023 fiscal guidelines. A central feature of the reform is a national list covering 127 tariff lines, aimed at stimulating economic growth and easing the cost of critical imports.
Under the revised structure, the import adjustment tax on crude palm oil has been reduced to an effective rate of 28.75 percent. Tariffs on fully built passenger vehicles, including four-wheel drives and station wagons, have also been cut to 40 percent, down from 70 percent under the 2015 policy.
To ease the transition, importers who opened Form M before April 1, 2026, have been granted a 90-day grace period to clear their goods at the previous rates. Meanwhile, a new excise duty framework and a green tax surcharge are scheduled to take effect from July 1, 2026.
Several staple goods also recorded notable reductions. Bulk rice imports now attract a 47.5 percent duty, reduced from 70 percent, while broken rice is pegged at 30 percent. Tariffs on raw sugar now range between 55 and 57.5 percent, while refined salt is fixed at 55 percent.
The policy also targets industrial growth, with reduced tariffs on construction and manufacturing inputs. Ceramic tiles now attract duties ranging from 35 to 46.25 percent. Steel products such as zinc-coated sheets, rods, and hot-rolled bars are mostly set at 35 percent, while cold-rolled low-carbon steel is reduced to 15 percent.
In a move to support infrastructure and local production, the government has eliminated import duties on agricultural and industrial machinery, cargo ships, railway locomotives, and breathing equipment.
Additionally, vehicles below 2000cc, mass transit buses, electric vehicles, and locally manufactured vehicle components have been exempted from the green tax surcharge—signaling a policy shift toward cleaner transportation and domestic industrial development.
