Government reduces tariffs on key imports to ease living costs, while introducing an environmental levy aimed at promoting cleaner energy and sustainable development…..
The Federal Government has rolled out a sweeping review of Nigeria’s import tariff regime, reducing duties on vehicles, food items and industrial equipment in a move aimed at easing the rising cost of living, while simultaneously introducing a new Green Tax to support environmental sustainability.
According to an update issued by the Nigeria Customs Service (NCS), the new measures took effect on July 1, 2026, under the 2026 Fiscal Policy Measures approved by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
As part of the reforms, import levies on vehicles have been significantly reduced. The levy on new vehicles has been cut from 20 percent to 10 percent, while that of used vehicles has dropped from 15 percent to five percent.
The government also reduced the import duty on passenger vehicles from 70 percent to 40 percent, a move expected to lower the cost of vehicle imports and make car ownership more affordable for Nigerians.
In a major incentive for cleaner transportation, mass transit buses and electric vehicles (EVs) have been granted full import duty exemptions. Authorities say the measure is intended to encourage the adoption of environmentally friendly transport while reducing operating costs for transport companies.
The policy is expected to provide relief for operators who rely heavily on imported buses, trucks, minibuses and light commercial vehicles for interstate and urban transportation.
Industry stakeholders believe lower import costs for commercial vehicles could eventually translate into reduced transport fares and lower logistics expenses, which play a significant role in determining food prices across the country.
Beyond the transport sector, the government also announced substantial reductions in import duties on several essential food commodities.
Import duty on bulk rice has been reduced from 70 percent to 47.5 percent, while the tariff on broken rice has been lowered to 30 percent. Duties on crude palm oil have also been cut from 35 percent to 28.75 percent.
Similarly, import duties on raw cane sugar have been adjusted to between 55 percent and 57.5 percent, a move expected to reduce production costs for food manufacturers and ease prices for consumers.
The reforms extend to the agricultural and manufacturing sectors, with the government removing import duties entirely on agricultural and industrial machinery to encourage local production and improve productivity.
In addition, Waste PET has now been placed on Nigeria’s export prohibition list as part of efforts to strengthen the domestic recycling industry and support environmental protection.
The latest fiscal measures represent one of the most comprehensive tariff reforms introduced in recent years, affecting 127 tariff lines across multiple sectors of the economy.
With lower duties on critical imports and incentives for cleaner transportation, the Federal Government hopes the reforms will help reduce inflationary pressures, lower business costs and provide much-needed relief for households grappling with the country’s economic challenges.
