Federal Government has approved sweeping 2026 fiscal measures slashing import duties on vehicles, rice, palm oil, sugar, and other essentials while introducing new taxes and protections to bolster local industries and economic growth.
Finance Minister and Economy Coordinating Minister Wale Edun signed the circular, effective April 1, 2026, replacing 2023 guidelines and aligning with ECOWAS Common External Tariff to stimulate key sectors.
Key tariff cuts cover 127 items: fully built passenger vehicles, including four-wheel drives and station wagons, drop to 40 per cent from 70 per cent; bulk rice to 47.5 per cent from 70 per cent; broken rice to 30 per cent; crude palm oil to 28.75 per cent; raw sugar to 55-57.5 per cent; envelopes to 40 per cent; notebooks to 30 per cent; unglazed ceramic tiles to 35 per cent; glazed tiles to 46.25 per cent; zinc-coated steel sheets, coils, and rods to 35 per cent; low-carbon cold-rolled steel to 15 per cent; automatic circuit breakers to 10 per cent; and modular surgical theatres to 5 per cent.
Zero duties apply to agricultural and manufacturing machinery, railway locomotives, cargo ships over 500 tonnes, and breathing equipment like gas masks.
New Supplementary Protection Measures include Import Adjustment Tax on 192 tariff lines and prohibitions on 17 items from non-ECOWAS countries, such as certain agricultural products and hazardous materials. Taxes phase out gradually from January 2027 to zero per cent by 2036, except AfCFTA items.
From July 1, 2026, excise duties hit non-alcoholic and alcoholic beverages, cigarettes, tobacco, and a green tax surcharge, exempting vehicles under 2000cc, mass transit buses, electric vehicles, and local auto parts.
A 90-day grace period allows pre-April 1 importers with Form ‘M’ and trade agreements to use old rates.
Waste polyethylene terephthalate joins the export prohibition list. Full details will appear in the Official Gazette, with Edun urging compliance.
The policy blends tariff relief with safeguards to drive industrialisation and meet trade commitments.
