FG Slashes Tariffs on 127 Items: Rice, Cars Drop Sharply, Zero Duty on Medicines & Machinery
- Nigeria's 2026 Fiscal Policy reduces import duties to combat inflation and support key sectors
- Zero tariffs granted on essential goods like rice, vehicles, and healthcare equipment to enhance affordability
- Mixed reactions highlight concerns about competition and job impacts within local industries amid tariff reforms
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s Federal Government has unveiled the 2026 Fiscal Policy Measures, slashing import duties and granting zero tariffs on 127 tariff lines to combat inflation, lower the cost of living, and bolster key sectors such as agriculture, healthcare, manufacturing, and transportation.
The changes, approved by Finance Minister Wale Edun, replace the 2023 framework and take effect around April 2026.
Source: Getty Images
Objectives of the tariff reforms
The policy aims to make essential goods more affordable while supporting local industries through cheaper inputs and machinery.
Reductions target high-impact items like rice, vehicles, and medicines, with many duties cut from previous rates of 70% or higher.
Zero-duty concessions apply to strategic equipment to encourage investment and production. A 90-day grace period allows importers with Form ‘M’ opened before April 1, 2026, to clear goods at old rates.
Automotive sector: Vehicles now more accessible
Fully built passenger vehicles, including 4WDs and station wagons, see duties slashed from 70% to 40%. Mass transit buses and electric vehicles (EVs) enjoy significant support, with EVs moving to zero duty in some cases.
This move is expected to ease transportation costs and promote cleaner mobility, though local assembly plants have raised concerns about potential competition.
Agriculture and food items: Relief on staples
Rice leads the food-related cuts. Bulk rice (over 5kg) drops from 70% to 47.5%, while broken rice falls to 30%. Crude palm oil sees its import adjustment tax reduced to 28.75% from 35%.
Other grains like wheat, maize, and sorghum also benefit from lower rates. Raw cane sugar tariffs ease to 55–57.5%, and wheat or meslin flour remains at 70% in some categories.
These adjustments aim to moderate food prices amid persistent inflationary pressures, though rice farmers worry about cheaper imports undermining local production.
Healthcare: Cheaper medicines and equipment
Essential drugs and medical supplies receive priority. Active Pharmaceutical Ingredients (APIs), vaccines, X-ray machines, ventilators, and surgical items move to zero or heavily reduced rates.
Antimalarial medications are now at 20%. Breathing apparatuses and gas masks drop from 5% to zero, which stakeholders say will improve access to critical healthcare tools and potentially lower medicine prices.
Manufacturing and infrastructure: Zero duty on key inputs
To boost industrialisation, the government grants zero duty on agricultural and manufacturing machinery, railway equipment and locomotives, cargo vessels over 500 tonnes, and raw materials such as iron and steel.
Industrial components like fuses, automatic circuit breakers, and lamp holders fall to 10%.
Air compressors and similar equipment drop to 5%. These concessions target cheaper production inputs and infrastructure development.
Additional measures and new levies
Alongside reductions, the policy introduces a green tax surcharge and new excise duties on beverages, tobacco, and selected items, effective July 1, 2026.
Locally manufactured cars and EVs are exempt from the green tax to encourage domestic production and eco-friendly transport.
Supplementary protection measures, including an import adjustment tax on additional lines and prohibitions on certain goods, accompany the reforms.
Mixed reactions from stakeholders
Pharmaceutical players welcome the cuts, anticipating better access to medicines.
However, rice farmers and some auto sector operators express reservations, fearing intensified competition could hurt local investments and jobs.
The government maintains that lower input costs will ultimately strengthen domestic industries over time.
Overall, the 2026 Fiscal Policy Measures signal a pragmatic shift toward balancing consumer relief with industrial growth.
Source: Facebook
By reducing barriers on 127 key items while introducing targeted protections and green incentives, authorities hope to ease inflationary pressures and lay the foundations for sustainable economic expansion.
Importers and businesses are advised to review the full gazetted list and comply with the transitional provisions for smooth implementation.
Slashes import tariffs on palm oil
Legit.ng earlier reported that 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.
Source: Legit.ng
