Nigeria’s new tariff changes – Major shifts in key sectors you need to know

Keep up with the latest news and be part of our weekly giveaways and airtime sharing; follow our WhatsApp channel for more updates. Click to Follow us

The Federal Government has approved the implementation of the 2026 Fiscal Policy Measures (FPM), introducing significant changes to import tariffs aimed at boosting growth in crucial sectors of the economy.

The approval was issued in a document dated April 1, 2026, and signed by the Minister of Finance, Wale Edun. This new policy replaces the 2023 FPM.

A key feature of the policy is the revision of import duties across 127 tariff lines, affecting items such as rice, sugar, vehicles, and industrial inputs. The government emphasized that these reductions are intended to “promote and stimulate growth in critical sectors of the economy.”

Under the new regime, the Import Adjustment Tax (IAT) on products like crude palm oil has been set at a total effective rate of 28.75 percent, down from higher rates under the previous tariff structure.

In the automotive sector, duties on fully built passenger vehicles, including four-wheel drives and station wagons, have been lowered to 40 percent from 70 percent, as per the 2015 FPM.

To ease the 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 old rates.

However, the policy also introduces a new excise duty regime, along with a green tax surcharge, both set to take effect from July 1, 2026.

Key Tariff Adjustments:

Here is a summary of the revised duties on several goods as outlined in the gazetted list:

• Antimalarial medicaments: 20%
• Rice (bulk or >5kg): 47.5% (down from 70%)
• Broken rice: 30% (down from 70%)
• Wheat or meslin flour: 70%
• Crude palm oil: 28.75% (down from 35%)
• Raw cane sugar: 55% (down from 70%)
• Cane/beet sugar (powder/granule): 57.5% (down from 70%)
• Margarine (excluding liquid): 40%
• Refined salt: 55% (down from 70%)
• Envelopes: 40% (down from 50%)
• Diaries/notebooks: 30% (down from 40%)
• Unglazed ceramic tiles: 35% (down from 40%)
• Glazed ceramic tiles: 46.25% (down from 55%)
• Ceramic cubes (<7 cm): 35% (down from 40%)

Steel and Industrial Inputs

• Zinc-coated steel sheets: 35% (down from 45%)
• Aluminum-coated steel coils: 35% (down from 45%)
• Electroplated steel: 35% (down from 45%)
• Cold-rolled steel (<0.25% carbon): 15%
• Hot-rolled deformed steel bars: 35% (down from 45%)
• Steel rods (5.5mm–14mm): 35% (down from 45%)

Other Key Adjustments:

• Electrical apparatus (e.g., fuses): 10% (down from 20%)
• Railway/tramway locomotives (SKD/CKD): 0% (down from 5%)
• Cargo ships (>500 tonnes): 0% (down from 5%)
• Breathing appliances and gas masks: 0% (down from 5%)
• Agricultural and manufacturing machinery: 0% (down from 5%)
• Modular surgical operating theaters: 5% (down from 20%)
• Air/vacuum pumps and compressors: 5% (down from 10%)
• Automatic circuit breakers: 10% (down from 20%)
• Lamp holders: 10% (down from 20%)

Green Tax Exemptions:

The policy also highlights categories exempted from the green tax surcharge, which include:

• Vehicles below 2000cc
• Mass transit buses (heading 87.02)
• Electric vehicles
• Locally manufactured vehicles under specified headings (87.06–87.13)

The government stated that these reforms are part of efforts to balance revenue generation with economic stimulation, while supporting local industries and reducing the cost of critical imports.

Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it. 
Drop your comment in the section below, and don’t forget to share the post.