The Nigerian federal government has officially implemented the 2026 Fiscal Policy Measures, introducing significant tariff reductions on 127 items to stimulate economic growth and lower the cost of living.
The Federal Government of Nigeria has approved the implementation of the 2026 Fiscal Policy Measures (FPM), introducing sweeping tariff amendments aimed at boosting critical economic sectors. In a circular dated April 1, 2026, signed by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, the government confirmed that these new measures supersede the 2023 FPM. The policy features a national list of 127 tariff lines with reduced import duty rates, a move designed to “promote and stimulate growth in critical sectors of the economy” while providing a 90-day grace period for importers with existing Form ‘M’ documentation to clear goods at prevailing rates.
Under the new regime, several essential commodities and transport assets have seen a marked reduction in effective duties. Notably, the Import Adjustment Tax (IAT) on crude palm oil has been lowered to 28.75 percent, while tariffs on fully built passenger vehicles and four-wheel drives have dropped to 40 percent, down from the 70 percent previously mandated in 2015. Food security also takes center stage in the gazette, with duties on bulk rice falling from 70 percent to 47.5 percent, and broken rice seeing a significant cut to 30 percent. Other adjustments include reductions for raw cane sugar and anti-malarial medicaments, though wheat and meslin flour remain high at 70 percent.
While the tariff reductions offer immediate relief for importers of essential goods, the government is also preparing to introduce new revenue-generating and environmental measures. A fresh excise duty regime and a green tax surcharge are scheduled to take effect starting July 1, 2026. These updates signal a dual approach by the administration to balance industrial stimulation with fiscal sustainability. Below is a breakdown of key tariff changes highlighted in the recent gazette:
READ THE FULL STORY IN THE CABLE