IN a new fiscal policy move, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has approved the implementation of 2026 policy measures, including downward tariff adjustments on about 30 items.
Part of the policy is a list of 127 tariff lines with reduced import duty rates, seeking to “promote and stimulate growth in critical sectors of the economy.”
The minister conveyed the Fiscal Policy Measures (FPM) via a circular dated April 1, 2026.
Informed sources at the Federal Ministry of Finance also confirmed to The ICIR that the new policy measure sought to provide fiscal policy relief for the import-dependent Nigeria economy over the effect of the US-Israel-Iran conflict.
They also said that the measure was part of a policy initiative geared towards improving trade facilitation and trade in goods, since the Nigerian Customs Service (NCS) had been occasionally accused of an arbitrary increase in customs duty, leading to cargoes staying longer at Nigerian ports.
For instance, the import adjustment tax (IAT) on items such as crude palm oil has been pegged at a total effective rate of 28.75 per cent, a decline from previous high-tariff regimes.
Also, fully built units of passenger motor vehicles, four-wheel drive motor vehicles, and station wagons now attract a total effective tariff of 40 per cent, indicating a slash as against the 70 per cent contained in the 2015 fiscal policy measures
According to the circular, a 90-day grace period was granted for importers who had opened Form ‘M’ before April 1 to enable them to clear their goods at prevailing rates.
But a new excise duty regime and the green tax surcharge are set to take effect from July 1, 2026.
Some of the items from the gazette include Anti-malarial medicaments (20 per cent), rice (in bulk or packing of 5kg, which now attracts a 47.5 per cent reduction, as against 70 per cent.
Also, broken rice drops to 30 per cent from 70 per cent, wheat or meslin flour stands at 70 per cent.
Other affected items are crude palm oil (now 28.75 per cent from 35 per cent), margarine (excluding liquid)– 40 per cent
Raw cane sugar (Beet sugar) drops to 57.5 per cent from 70 per cent. Raw cane sugar (Other) is now 55 per cent (reduced from 70 per cent).
There is also Cane/Beet sugar (Powder/Granule) dropping from 70 per cent to 57.5 per cent.
Refined salt (for human consumption) equally dropped from 70 per cent to 55 per cent; envelopes 40 per cent (reduced from 50 per cent), and diaries/notebooks came down from 40 per 30 per cent.
The ICIR reports that the fiscal document outlines significant tariff reductions on various products, including:
– Wheat or Meslin flour: 70 per cent
– Crude palm oil: reduced from 35 per cent to 28.75 per cent
– Margarine (excluding liquid): 40 per cent
– Raw cane sugar (Beet sugar): reduced from 70 per cent to 57.5 per cent
– Raw cane sugar (Other): reduced from 70 per cent to 55 per cent
– Cane/Beet sugar (Powder/Granule): reduced from 70 per cent to 57.5 per cent
– Refined salt (for human consumption): reduced from 70 per cent to 55 per cent
– Envelopes: reduced from 50 per cent to 40 per cent
– Diaries/Notebooks: reduced from 40 per cent to 30 per cent
– Unglazed ceramic tiles: reduced from 40 per cent to 35 per cent
– Glazed ceramic tiles: reduced from 55% to 46.25 per cent
– Ceramic cubes (7cm): reduced from 40 per cent to 35 per cent
– Zinc-coated steel sheets: reduced from 45 per cent to 35 per cent
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.