The Nigeria Federal Government has approved the 2026 Fiscal Policy Measures, slashing import duties on vehicles, rice, sugar, palm oil and other key goods while introducing new excise duties and a green tax surcharge on beverages and tobacco.

The policy, contained in an April 1, 2026 circular signed by Minister of Finance and Coordinating Minister of the Economy Wale Edun, replaces the 2023 framework and takes immediate effect. It aligns with the ECOWAS Common External Tariff 2022–2027 and covers 127 tariff lines with reduced rates aimed at stimulating growth in critical sectors.

Key tariff cuts:

Import duty on fully built passenger vehicles, including four-wheel drives and station wagons, has been cut to 40% from the previous 70% set under the 2015 policy. Bulk rice now attracts 47.5% duty, down from 70%, while broken rice is reduced to 30%. Crude palm oil is pegged at 28.75%, down from 35%. Raw cane sugar ranges between 55% and 57.5%, down from 70%. Refined salt for human consumption has been adjusted to 55% from 70%.

New taxes:

The government introduced an excise duty regime and a green tax surcharge on non-alcoholic beverages, alcoholic beverages, cigarettes and tobacco products, set to take effect from July 1, 2026.

To ease the transition, importers who opened Form ‘M’ before April 1 have a 90-day grace period to clear consignments using the old tariff rates.

The circular noted that all Import Adjustment Taxes, except for products on the African Continental Free Trade Area 3% list, will be gradually reduced annually until full elimination by 2036 in line with Nigeria’s ECOWAS/AfCFTA commitments.