The Federal Government of Nigeria has approved new 2026 fiscal policy measures introducing major reductions in import tariffs on key commodities, including vehicles, rice, palm oil, and sugar, in a move aimed at stimulating economic growth and supporting critical sectors.

The policy was announced in a circular signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who said the new framework replaces the 2023 fiscal guidelines.

At the centre of the reform is a revised national tariff schedule covering 127 items, with wide-ranging adjustments across consumer goods, raw materials, and industrial inputs.

Import duties on fully built passenger vehicles, including SUVs and station wagons, have been reduced to 40% from 70%, marking a significant shift in auto import policy.

Food-related imports were also revised, with bulk rice tariffs reduced to 47.5%, while broken rice now attracts a 30% duty. Crude palm oil imports will carry an effective duty of 28.75%, and raw sugar tariffs have been adjusted to between 55% and 57.5%.

Other changes include refined salt at 55%, while industrial materials such as ceramic tiles and steel products now attract reduced duties. Steel imports are largely pegged at 35%, while cold-rolled low-carbon steel is set at 15%.

To encourage industrial growth, the government approved zero import duties on agricultural and industrial machinery, cargo ships, railway locomotives, and breathing equipment.

Importers who began transactions before April 1 will benefit from a 90-day grace period to clear goods under the previous tariff structure. A new excise duty regime and green tax surcharge are also scheduled to take effect from July 1, 2026.

However, vehicles below 2000cc, mass transit buses, electric vehicles, and locally manufactured auto components are exempted, reflecting a policy shift toward cleaner transportation and domestic production support.