The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has approved the commencement of fiscal policy measures for 2026, including sizeable tariff adjustments on about 30 items, with the Federal Government slashing import duties on cars, sugar cane, and palm oil among other goods.
Part of the policy is a list of 127 tariff lines with reduced import duty rates, with the target to promote and stimulate growth in critical sectors of the economy. The minister conveyed the Fiscal Policy Measures via a circular dated April 1, 2026, indicating that the new measures supersede those of 2023.
Under the new regime, 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, representing a significant slash from the 70 per cent contained in the 2015 fiscal policy measures. Also, the import adjustment tax on items such as crude palm oil has been pegged at a total effective rate of 28.75 per cent, a decline from the previous high-tariff regime of 35 per cent.
Raw cane sugar, also known as beet sugar, now drops to 57.5 per cent from the previous 70 per cent, while other raw cane sugar is now reduced to 55 per cent from 70 per cent. Cane or beet sugar in powder or granule form similarly dropped from 70 per cent to 57.5 per cent. Rice in bulk or packing of 5kg now attracts a 47.5 per cent reduction from the previous 70 per cent, while broken rice drops to 30 per cent from 70 per cent.
Other affected items include margarine, excluding liquid, now at 40 per cent, refined salt for human consumption dropping from 70 per cent to 55 per cent, envelopes reduced from 50 per cent to 40 per cent, and diaries and notebooks coming down from 40 per cent to 30 per cent. Ceramic tiles also saw reductions, with unglazed ceramic tiles now at 35 per cent from 40 per cent, glazed ceramic tiles at 46.25 per cent from 55 per cent, and ceramic cubes under 7cm at 35 per cent from 40 per cent. Zinc-coated steel sheets dropped from 45 per cent to 35 per cent.
According to the circular, a 90-day grace period has been granted for importers who had opened Form M before April 1 to enable them to clear their goods at the prevailing rates before the new measures take full effect. However, a new excise duty regime and a green tax surcharge are set to take effect from July 1, 2026. Wheat or meslin flour remains at 70 per cent under the new fiscal document.
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