Relief for Nigerians as FG reduces import duties on food, vehicles, medicines

The Federal Government has rolled out a fresh set of fiscal policies for 2026, introducing significant changes to import duties on a wide range of goods in a bid to support economic growth and reduce the cost of essential items.

The announcement was made in a document dated April 1, 2026, and signed by the Minister of Finance, Wale Edun. The new policy replaces the one introduced in 2023.

One major part of the policy is the adjustment of import duties on 127 different goods. These include rice, sugar, vehicles, and materials used in industries. The government says the goal is to support business growth and make important goods more affordable.

For example, the Import Adjustment Tax on crude palm oil has been reduced to 28.75 percent. In the automobile sector, the duty on imported passenger vehicles, including SUVs and station wagons, has been lowered from 70 percent to 40 percent.

To help importers adjust, the government has given a 90-day grace period. This means those who started their import process before April 1 can still clear their goods using the old rates.

However, new taxes will also be introduced. A new excise duty and a green tax surcharge will begin on July 1, 2026.

Key Changes in Tariffs:

Antimalarial drugs: 20%

Rice (more than 5kg): 47.5% (reduced from 70%)

Broken rice: 30% (reduced from 70%)

Wheat flour: 70%

Crude palm oil: 28.75% (reduced from 35%)

Raw sugar: 55% (reduced from 70%)

Refined sugar: 57.5% (reduced from 70%)

Margarine: 40%

Refined salt: 55% (reduced from 70%)

Envelopes: 40%

Notebooks/diaries: 30%

Ceramic tiles: between 35% and 46.25%

Steel and Industrial Materials:

Zinc-coated steel: 35%

Aluminum-coated steel: 35%

Electroplated steel: 35%

Cold-rolled steel: 15%

Steel rods and bars: 35%

Other Important Changes:

Electrical items (like fuses): 10%

Railway equipment: 0%

Large cargo ships: 0%

Gas masks and breathing equipment: 0%

Agricultural and manufacturing machines: 0%

Surgical operating theatres: 5%

Pumps and compressors: 5%

Circuit breakers and lamp holders: 10%

Green Tax Exemptions:

Some items will not be affected by the new green tax. These include:

Vehicles with engines below 2000cc

Mass transit buses

Electric vehicles

Locally made vehicles

The government says these changes are meant to balance revenue generation, support local industries, and reduce the cost of essential imports.