Uche Amunike
Lifeandtimes News Writer
Under the 2026 Fiscal Policy Measures, some Nigerian government import duty cuts have been approved. These include a reduction in vehicle import tariffs and introduction of new excise duties on beverages and tobacco products.
Speaking, through a document issued by the Minister of Finance and Coordinating Minister of the economy, Wale Edun, the government stated that the measures, which became effective April 1, are designed to align with the ECOWAS Common External Tariff framework, to support key sectors of the economy.
This policy introduces Supplementary Protection Measures, which include an Import Adjustment Tax on 192 tariff lines, which is an important prohibition list covering 17 items from non-ECOWAS countries, as well as the national list of 127 items with reduced duties.
The document provided details, which stated: ‘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,’ as against the previous 70 per cent.
Crude palm oil imports now also attract a 28.75% effective rate, thereby reflecting a reduction from earlier height to refer James.
There are also significant adjustments in food imports as bulk rice now attracts a duty of 47.5%, down from 70% while broken rice has been reduced to 30%.
The Nigerian government has also given approval for exercise duties on non-alcoholic and alcohol, alcoholic, beverages, cigarettes, and tobacco products, including a green tax surcharge expected to take effect from July one, 2026.
According to the document: ‘A grace period of 90 days commencing from the date of this circular is hereby granted to all importers, manufacturers, and service providers before the implementation of the new excise duty rates.’
‘The new excise duty rates shall therefore take effect from July 1, 2026, while the rates for 2027 and 2028 shall take effect on January 1 of each year.’
The policy also includes an import prohibition list, which is applicable to certain goods from non-ECOWAS countries, as well as the addition of waste Polyethylene terephthalate (rPET) to the export prohibition list.
Speaking on transitional arrangements, the Nigerian government stated that importers with existing from ‘M’ and irrevocable trade agreements before April 1, would be permitted to clear goods under the old rates within a 90-day window, while new transactions would be subject to the revised team.
The document added: ‘However, with effect from January 2027, all Import Adjustment Taxes, except for products on the AfCFTA three per cent list, shall be gradually reduced annually until full elimination to 0% by 2036.’
According to the federal government, the new fiscal measures will be published in the Official Gazette and authorities would be expected to enhance trade compliance, drive long-term economic growth and protect local industries.
Mr Edun’s words: ‘These Fiscal Policy Measures which supersede the 2023 Fiscal Policy Measures shall be published in the Official Federal Government Gazette.’
