The federal government has unveiled sweeping tariff reductions under its 2026 fiscal policy, raising hopes of lower prices and improved economic activity across key sectors.
In a circular dated April 1, 2026, and signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the government confirmed that the new framework replaces the 2023 tariff regime.
The revised policy covers 127 tariff lines, targeting sectors considered critical for economic growth and industrial expansion.
Under the new structure, import duties on fully built passenger vehicles, including four-wheel drives and station wagons, have been reduced to 40 percent from 70 percent set in the 2015 policy.
The import adjustment tax on crude palm oil has also been lowered to an effective rate of 28.75 percent.
Food imports recorded notable changes, with bulk rice now attracting a 47.5 percent duty, down from 70 percent, while broken rice is pegged at 30 percent.
Tariffs on raw sugar have been cut to between 55 and 57.5 percent, and refined salt now stands at 55 percent.
The reforms extend to industrial inputs and construction materials.
Tariffs on ceramic tiles now range from 35 to 46.25 percent, while most steel products, including zinc-coated sheets, rods, and hot-rolled bars, are set at 35 percent.
Cold-rolled low-carbon steel has been reduced further to 15 percent.
In a move aimed at boosting manufacturing and infrastructure, the government has slashed import duties on agricultural and industrial machinery, cargo ships, railway locomotives, and breathing equipment to zero.
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To ease the transition, importers who opened Form M before April 1 have been granted a 90-day grace period to clear goods under the old rates.
A new excise duty regime and green tax surcharge are, however, scheduled to take effect from July 1, 2026.
Vehicles below 2000cc, mass transit buses, electric vehicles, and locally manufactured auto components have been exempted from the green tax, highlighting efforts to promote cleaner transportation and support domestic production.
Analysts say the policy could reduce import costs, stimulate industrial activity, and improve access to essential goods nationwide.
