Nigeria unveils 2026 fiscal policy framework, revises tariffs across 127 product lines, introduces phased tax reforms
The federal government has approved the implementation of the 2026 Fiscal Policy Measures (FPM), introducing a broad overhaul of import tariffs, excise structures, and selected tax provisions aimed at reshaping trade dynamics and stimulating growth across key sectors of the economy.
The policy, contained in a circular dated April 1, 2026 and signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, supersedes the 2023 fiscal policy framework and establishes a revised national tariff list covering 127 tariff lines with adjusted import duty rates.
Broad tariff restructuring and economic objectives
According to the government, the revised tariff structure is designed to “promote and stimulate growth in critical sectors of the economy,” through targeted reductions in import duty rates on selected goods while maintaining protective duties on strategic imports.
A key adjustment is the reduction of the import adjustment tax (IAT) on crude palm oil to a total effective rate of 28.75 percent, down from the previous higher tariff regime. Fully built passenger vehicles—including four-wheel drive vehicles and station wagons—will now attract a 40 percent total effective tariff, reduced from 70 percent under the 2015 fiscal policy framework.
The reforms also include a 90-day grace period for importers who had opened Form ‘M’ before April 1, 2026, allowing them to clear goods at prevailing rates prior to full enforcement of the new structure.
However, the circular confirmed that a new excise duty regime alongside a green tax surcharge will take effect from July 1, 2026, marking a phased transition in fiscal implementation.
Selected tariff adjustments across goods categories
The gazetted tariff schedule outlines detailed adjustments across agricultural products, food items, industrial inputs, construction materials, and machinery. The government provided the following revised rates:
Medicines and agricultural staples
- Anti-malarial medicaments: 20 percent
- Rice (in bulk or packing >5kg): 47.5 percent (reduced from 70 percent)
- Broken rice: 30 percent (reduced from 70 percent)
- Wheat or meslin flour: 70 percent
- Crude palm oil: 28.75 percent (reduced from 35 percent)
- Margarine (excluding liquid): 40 percent
- Raw cane sugar (beet sugar): 57.5 percent (reduced from 70 percent)
- Raw cane sugar (other): 55 percent (reduced from 70 percent)
- Cane/beet sugar (powder/granule): 57.5 percent (reduced from 70 percent)
- Refined salt (for human consumption): 55 percent (reduced from 70 percent)
Consumer goods and packaging materials
- Envelopes: 40 percent (reduced from 50 percent)
- Diaries/notebooks: 30 percent (reduced from 40 percent)
- Unglazed ceramic tiles: 35 percent (reduced from 40 percent)
- Glazed ceramic tiles: 46.25 percent (reduced from 55 percent)
- Ceramic cubes (<7cm): 35 percent (reduced from 40 percent)
Steel, construction materials and industrial inputs
Under the steel and industrial category, multiple reductions were recorded:
- Zinc-coated steel sheets: 35 percent (reduced from 45 percent)
- Steel coils (aluminium coated): 35 percent (reduced from 45 percent)
- Electrolytically plated steel: 35 percent (reduced from 45 percent)
- Cold-rolled steel (<0.25 percent carbon): 15 percent
- Hot-rolled steel bars (deformed): 35 percent (reduced from 45 percent)
- Steel rods (diameter 5.5mm–14mm): 35 percent (reduced from 45 percent)
Machinery, transport equipment and capital goods
Significant tariff relief was also extended to machinery and capital equipment:
- Electrical apparatus (fuses, etc.): 10 percent (reduced from 20 percent)
- Railway/tramway locomotives (SKD/CKD): 0 percent (reduced from 5 percent)
- Cargo ships (>500 tonnes): 0 percent (reduced from 5 percent)
- Breathing appliances and gas masks: 0 percent (reduced from 5 percent)
- Agriculture/manufacturing machinery: 0 percent (reduced from 5 percent)
- Modular surgical operating theatre: 5 percent (reduced from 20 percent)
- Air or vacuum pumps/compressors: 5 percent (reduced from 10 percent)
- Automatic circuit breakers: 10 percent (reduced from 20 percent)
- Lamp holders: 10 percent (reduced from 20 percent)
Green tax surcharge exemptions
The policy also specified items exempted from the upcoming green tax surcharge, which include:
- Vehicles below 2000cc
- Vehicles classified under heading 87.02 (mass transit buses)
- Electric vehicles
- Locally manufactured vehicles under headings 87.06, 87.07, 87.08, 87.10, 87.11, 87.12, and 87.13
Transition measures and implementation outlook
To ease transition into the new regime, importers who opened Form ‘M’ prior to April 1, 2026 will benefit from a 90-day window to clear goods under existing tariff conditions. After this period, full enforcement of the revised structure will apply.
The introduction of the excise duty framework and green tax surcharge from July 1, 2026 is expected to further refine the fiscal environment, with emphasis on environmental considerations, industrial development, and revenue optimisation.
Overall, the 2026 Fiscal Policy Measures represent one of the most comprehensive tariff restructurings in recent years, combining broad-based reductions in import duties with targeted fiscal controls and phased implementation mechanisms.