The Federal Government has reduced import duties on cars and essential food items in the new 2026 Fiscal Policy Measures.
The Federal Government has officially rolled out its 2026 Fiscal Policy Measures (FPM), bringing a wave of changes to how goods are taxed at the borders.
This new move is aimed at breathing fresh life into the economy and making essential items more affordable for Nigerians.
Finance Minister Wale Edun signed off on the document, which took effect on April 1, 2026. This new policy completely replaces the 2023 version, marking a significant shift in how the government handles trade and revenue.
Election season will always introduce desperate decisions, At the heart of this update is a massive review of import duties across 127 different items. The government’s goal is clear: lower the cost of doing business and help critical sectors grow faster.
Big Wins for Food and Transport
If you deal in food or vehicles, there is some good news. The duty on rice (bulk or large bags) has dropped significantly from 70% down to 47.5%. Even broken rice, which many rely on, saw a sharp cut from 70% to 30%.
Car buyers and dealers are also in for a break. The tariff on fully built passenger vehicles and SUVs has been slashed from 70% to 40%. This is a major reversal of the high rates set nearly a decade ago.
Industrial and Household Relief
It’s not just about food and cars. The government is also easing the burden on industrial inputs and household staples:
Crude Palm Oil: Now 28.75% (previously 35%).
Sugar: Raw cane sugar dropped to 55%, while refined sugar fell to 57.5%.
Steel and Construction: Duties on zinc-coated steel and aluminum coils were reduced to 35% to support the building sector.
Essential Goods: Tariffs on items like envelopes and notebooks were also trimmed to help local consumers.
Zero Duty on Health and Infrastructure
To support the health and transport sectors, the government has removed duties entirely (0%) on specific items. These include cargo ships, railway locomotives, and life-saving equipment like breathing masks and gas masks. Even modular surgical theaters saw a big drop from 20% to just 5%.
The "Green Tax" and Grace Period
While many duties are going down, a new "Green Tax" surcharge and updated excise duties are coming. These will start on July 1, 2026. However, small cars (under 2000cc), electric vehicles, and locally made cars won't have to pay this green tax.
For those who already have goods on the way, the government is offering a 90-day grace period. If you opened your Form ‘M’ before April 1, you can still clear your goods using the old rates.
This policy shift shows a deliberate effort by the government to balance its need for revenue with the urgent need to support local industries and reduce the high cost of living for the average Nigerian.
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