Nigerians Smile As FG Reduces Import Tariffs On Cars, Palm Oil, And Sugar Under New 2026 Fiscal Policy Measures

The federal government has approved the implementation of its 2026 fiscal policy measures, introducing wide ranging tariff cuts aimed at boosting key sectors of the economy.

In a circular dated April 1, 2026 and signed by Wale Edun, minister of finance and coordinating minister of the economy, the government said the new policy replaces the 2023 framework.

Central to the reforms is a national list of 127 tariff lines with reduced import duties designed to stimulate growth. Under the new regime, the import adjustment tax on crude palm oil is set at an effective rate of 28.75 percent, lower than previous rates.

Tariffs on fully built passenger vehicles, including four wheel drives and station wagons, have also dropped to 40 percent from 70 percent under the 2015 policy.

Importers who opened Form M before April 1 have been granted a 90 day grace period to clear goods at the old rates. Meanwhile, a new excise duty regime and green tax surcharge will take effect from July 1, 2026.

Several essential goods saw notable reductions. Rice imported in bulk now attracts a 47.5 percent duty, down from 70 percent, while broken rice is pegged at 30 percent. Raw sugar tariffs range between 55 and 57.5 percent, also reduced from 70 percent.

Refined salt is now 55 percent, while crude palm oil stands at 28.75 percent. Industrial inputs and construction materials also recorded cuts.

Tariffs on ceramic tiles now range between 35 and 46.25 percent, while steel products such as zinc coated sheets, rods and hot rolled bars are mostly set at 35 percent.

Cold rolled steel with low carbon content is pegged at 15 percent. In a push to support manufacturing and infrastructure, duties on agricultural and industrial machinery, cargo ships, railway locomotives and breathing equipment have been reduced to zero.

Vehicles below 2000cc, mass transit buses, electric vehicles and locally manufactured vehicle components are excluded from the green tax surcharge, signaling a shift toward cleaner transport and local production. Continue Your, Reading. .