BREAKING: FG Cuts Import Duties

The Federal Government of Nigeria has approved the 2026 Fiscal Policy Measures (FPM), which include significant reductions in import duties across key sectors, as part of its strategy to stimulate economic growth and enhance revenue generation.

The new measures, announced in a document dated April 1, 2026, and signed by Finance Minister Wale Edun, replace the 2023 Fiscal Policy Measures.

The updated policy affects 127 tariff lines, including food items, industrial inputs, pharmaceuticals, and vehicles. The changes aim to foster economic growth while balancing fiscal objectives.

Under the new framework, the import duty on bulk rice (over 5kg) has been slashed to 47.5 percent, down from 70 percent, while the duty on broken rice has been reduced to 30 percent from 70 percent. Additionally, raw cane sugar now attracts a 55 percent duty, down from 70 percent, and crude palm oil has seen its effective rate fall to 28.75 percent from 35 percent.

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In the automotive sector, duties on fully built passenger vehicles, including four-wheel drives and station wagons, have been cut to 40 percent, down from 70 percent in the 2015 FPM. Vehicles below 2000cc, electric vehicles, and mass transit buses are exempt from the upcoming green tax surcharge.

The new policy also reduces duties on several industrial and manufacturing inputs, including zinc-coated steel sheets, aluminum-coated steel coils, and electroplated steel, which now attract a 35 percent duty, down from 45 percent. Agricultural and manufacturing machinery, railway locomotives (SKD/CKD), cargo ships over 500 tonnes, breathing appliances, and gas masks will be duty-free.

Modular surgical operating theatres have had their duties reduced to 5 percent from 20 percent, while automatic circuit breakers and lamp holders now carry a 10 percent duty, down from 20 percent.

To facilitate a smooth transition, the government has granted a 90-day grace period for importers who opened Form ‘M’ before April 1, allowing them to clear goods at the previous rates.

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However, a new excise duty regime and green tax surcharge are set to come into effect on July 1, 2026.

The government stated that the reforms are aimed at supporting local industries, reducing the cost of critical imports, and aligning fiscal policy with the broader efforts of economic recovery.

For further updates on economic reforms and policy developments across Africa, stay with Polity Reporters.

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