By Sabiu Abdullahi l
The Federal Government has rolled out a fresh set of fiscal measures for 2026, bringing significant changes to import tariffs across several sectors in a bid to boost economic growth.
The decision was contained in a document dated April 1, 2026, and endorsed by the Minister of Finance, Wale Edun. The new framework replaces the 2023 Fiscal Policy Measures.
As part of the reform, authorities reviewed import duties on 127 tariff categories. The affected items include rice, sugar, vehicles, and key industrial materials. According to the government, the reductions are intended to “promote and stimulate growth in critical sectors of the economy”.
One of the notable adjustments is the Import Adjustment Tax on products such as crude palm oil, which now stands at an effective rate of 28.75 percent. This marks a reduction from previous levels.
In the automobile sector, tariffs on fully assembled passenger vehicles, including four-wheel drives and station wagons, have been lowered to 40 percent. The rate was previously set at 70 percent under the 2015 policy.
To cushion the impact of the transition, the government approved a 90-day grace period for importers who opened Form ‘M’ before April 1. This allows them to clear their goods using the old tariff rates.
Despite the reductions, the policy introduces new measures. These include an excise duty regime and a green tax surcharge. Both are expected to take effect from July 1, 2026.
Details released in the gazetted list show revised duties across various goods. Import duty on antimalarial drugs is set at 20 percent. Rice imported in bulk or in quantities above 5kg now attracts 47.5 percent, down from 70 percent, while broken rice is fixed at 30 percent from the previous 70 percent.
Other adjustments include wheat flour at 70 percent, crude palm oil at 28.75 percent from 35 percent, and raw cane sugar at 55 percent from 70 percent. Refined salt now attracts 55 percent, also reduced from 70 percent.
In the manufacturing and construction sectors, duties on items such as ceramic tiles, envelopes, and notebooks have also been lowered. Steel and industrial inputs, including zinc-coated sheets and aluminum-coated coils, now attract 35 percent, down from 45 percent in many cases.
Further changes affect machinery and equipment. Agricultural and manufacturing machines now attract zero duty, reduced from 5 percent. Railway locomotives, cargo ships, and breathing equipment have also been exempted from import duty.
Additionally, modular surgical operating theatres now attract 5 percent duty instead of 20 percent, while air compressors and pumps have been reduced to 5 percent from 10 percent.
The policy also outlines exemptions under the planned green tax surcharge. These cover vehicles below 2000cc, mass transit buses, electric vehicles, and locally produced vehicles within specified categories.
The Federal Government explained that the reforms are designed to strike a balance between revenue generation and economic expansion, while also supporting local industries and reducing the cost of essential imports.
