FG Moves to Crash Palm Oil Prices, Slashes Import Tariffs by 17 Per Cent

• Federal Government reduces crude palm oil import tariffs by 17% to combat rising food costs
• Tariff cuts extended to rice and sugar aim to improve food affordability and stimulate economic growth
• Experts predict potential relief for consumers as lower duties may ease food inflation pressures

Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.

In a move aimed at easing rising food costs, the Federal Government has reduced import tariffs on crude palm oil by 17 per cent, lowering the rate from 35 per cent to 28.75 per cent.

The decision forms part of the newly approved 2026 Fiscal Policy Measures (FPM), designed to stimulate economic activity and bring relief to consumers.

The policy was detailed in a circular dated April 1, 2026, signed by Finance Minister Wale Edun. It replaces the 2023 fiscal framework and introduces sweeping tariff adjustments across key food imports.

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Palm oil, rice, and sugar get major duty reductions

Beyond crude palm oil, the government extended tariff cuts to several staple food items, signalling a broader strategy to tackle inflation and improve food affordability.

Bulk rice imports (above 5kg) now attract a 47.5 per cent duty, down sharply from 70 per cent.

Broken rice tariffs have also been reduced to 30 per cent from the previous 70 per cent, offering potential relief in a market where rice remains a major household staple.

Similarly, import duties on sugar have been revised downward. Raw cane sugar now ranges between 55 and 57.5 per cent, depending on type, compared to the earlier 70 per cent benchmark. Powdered and granulated sugar fall within the same revised range.

However, not all items were affected. Wheat flour tariffs remain unchanged at 70 per cent, margarine at 40 per cent, and refined salt for human consumption holds steady at 55 per cent.

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Aligning with regional trade and growth goals

According to the policy document, the tariff adjustments are part of efforts to align Nigeria’s trade structure with the ECOWAS Common External Tariff framework. The reforms also introduce a revised Import Adjustment Tax (IAT), which has been lowered on select goods, including crude palm oil.

In total, the government approved reduced duty rates across 127 tariff lines, targeting sectors considered critical to economic growth and food security.

Officials say the changes are intended to “promote and stimulate growth” while improving supply chains and stabilising market prices, according to a report by BusinessDay.

Grace period and new taxes ahead

To ease the transition, the government granted a 90-day grace period for importers who opened Form ‘M’ before April 1, allowing them to clear goods at the old tariff rates.

Looking ahead, authorities also signalled additional fiscal measures. New excise duties and a green tax surcharge are set to take effect from July 1, 2026, potentially impacting other sectors of the economy.

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Experts see potential relief for consumers

Economic analysts believe the tariff reductions could help moderate food inflation, especially if importers pass cost savings down to consumers.

Lower import duties may also improve supply levels, reducing pressure on locally produced alternatives.

While the full impact will depend on market dynamics and exchange rates, the policy has been widely viewed as a step toward easing the financial strain on households.

If effectively implemented, the tariff cuts could mark a turning point in Nigeria’s ongoing battle with high food prices, offering some much-needed relief to consumers across the country.

Fuel imports surge as marketers rival Dangote Refinery

Legit.ng reported that a surge in fuel imports is reshaping Nigeria’s downstream petroleum market, as independent marketers intensify supply efforts to rival the dominance of the Dangote Refinery.

Days after the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) issued six new import licences, multiple vessels carrying petrol (PMS), diesel (AGO), and butane have berthed across key terminals in Lagos and Port Harcourt.

Industry data from PetroleumPriceNG shows heightened tanker activity between March 27 and April 1, 2026, signalling a coordinated push by marketers such as Bovas and Matrix Energy to stabilise supply and ease pricing pressure.

Source: Legit.ng