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.
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 (FPM) via a circular dated April 1, 2026, indicating that the new measures supersede those of 2023.
For instance, the import adjustment tax (IAT) on items such as crude palm oil has been pegged at a total effective rate of 28.75 per cent, a decline from previous high-tariff regimes.
Also, fully-built units of passenger motor vehicle, four-wheel drive motor vehicle, and station wagon now attract a total effective tariff of 40 per cent, indicating a slash as against the 70 per cent contained in the 2015 fiscal policy measures
According to the circular, a 90-day grace period was granted for importers who had opened Form ‘M’ before April 1 to enable them to clear their goods at prevailing rates.
But a new excise duty regime and the green tax surcharge are set to take effect from July 1, 2026.
Some of the items from the gazette include: Anti-malarial medicaments (20 per cent; rice (In bulk or packing of 5kg now attracts a 47.5 per cent reduction) as against 70 per cent
Also, broken rice drops to 30 percent from 70 percent, wheat or meslin flour stand at 70 percent.
Other affected items are crude palm oil (now 28.75 per cent from 35 per cent), margarine (excluding liquid)– 40 per cent
Raw cane sugar (Beet sugar) drops to 57.5 per cent from 70 per cent, Raw cane sugar (Other) is now 55 per cent (reduced from 70 per cent).
There is also Cane/Beet sugar (Powder/Granule) dropping from 70 per cent to 57.5 per cent.
Refined salt (for human consumption) equally dropped from 70 per cent to 55 per cent; envelopes 40 per cent (reduced from 50 per cent) and Diaries/notebooks came down from 40 per 30 per cent (reduced from 40 per cent).
Some others in the fiscal document are 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); 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); and Zinc-coated steel sheets: 35 percent (reduced from 45 percent), among others.
Ndubuisi Francis
