The Federal Government has slashed import duties on rice, sugar, vehicles, pharmaceuticals and renewable energy equipment under its 2026 Fiscal Policy Measures, with the new rates now in effect.
FG CUTS IMPORT DUTIES ON RICE, DRUGS, SOLAR GEAR TO EASE COST OF LIVING
The Federal Government has announced a reduction in import duties on several essential goods as part of its 2026 Fiscal Policy Measures (FPM), with the revised tariff rates taking effect this July.
According to Ripples Nigeria, the policy was approved by Minister of Finance and Coordinating Minister of the Economy Taiwo Oyedele, and revises 127 tariff lines covering household, industrial and healthcare-related goods. The move is aimed at easing inflationary pressures, reducing production costs for local businesses and improving access to critical goods for ordinary Nigerians.
Essential goods affected by the new tariff regime include:
• Bulk rice – import duty cut from 70% to 47.5%
• Broken rice – now attracts a 30% import duty
• Raw cane sugar – duty reduced to between 55% and 57.5%
• Crude palm oil – duty cut from 35% to 28.75%
• Passenger vehicles – tariff reduced from 70% to 40%
• Mass transit buses – now attract 0% import duty
• Electric vehicles (EVs) – now attract 0% import duty
• Manufacturing machinery and equipment – now attract 0% import duty
• Pharmaceutical inputs and active ingredients – duty concessions to support local drug production
• Renewable energy equipment, including solar components – reduced or zero-duty rates to encourage clean energy adoption
The government said the measures are expected to make essential goods more affordable, lower transportation costs, encourage investment in local manufacturing and improve industrial productivity nationwide.
It added that the fiscal changes are designed to strengthen domestic production capacity while easing the financial burden on households and small businesses across the country. Ripples Nigeria reported that the revised tariff structure forms part of the Federal Government’s broader economic reform agenda, targeting growth, competitiveness and long-term solutions to the country’s persistent cost-of-living challenges.
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