Tinubu administration rolls out sweeping tariff cuts as global oil shocks threaten prices; EVs, transit buses, and manufacturing equipment now enjoy zero import duty…..
The Federal Government has announced a sweeping reduction in import duties on key goods, including electric vehicles, mass transit buses, and manufacturing machinery, in a bold policy shift aimed at easing inflationary pressure and supporting economic stability.
The move follows a directive from President Bola Ahmed Tinubu, who instructed top economic officials to develop immediate measures to cushion Nigerians from the impact of escalating global energy disruptions linked to the ongoing Middle East crisis.
According to a statement shared on Monday via X by Dada Olusegun, Special Assistant to the President on Social Media, the new fiscal adjustments are designed to reduce the cost of living, strengthen local businesses, and improve affordability across critical sectors of the economy.
Olusegun said the administration had approved “a massive reduction in import duties on selected products” as part of a broader strategy to tame inflation, stimulate production, and ease financial pressure on households.
Zero duties for EVs, buses, and manufacturing equipment
Under the new policy, electric vehicles will now attract zero percent import duty, down from 5 percent. Mass transit buses have also been fully exempted, while import duties on manufacturing machinery have been completely removed.
Officials say the changes are intended to accelerate cleaner transportation, reduce logistics costs, and encourage industrial expansion by lowering the cost of essential production inputs.
Wide-ranging tariff cuts across food and construction sectors
The reform package also introduces significant reductions across several high-demand import categories:
- Passenger vehicle tariffs cut from 70% to 40%
- Bulk rice reduced from 70% to 47.5%
- Broken rice slashed from 70% to 30%
- Raw cane sugar adjusted from 70% to between 55% and 57.5%
- Crude palm oil lowered from 35% to 28.75%
- Steel sheets and coils reduced from 45% to 35%
- Glazed ceramic tiles cut from 55% to 46.25%
A 90-day transition window, which began on April 1, has also been introduced to allow importers and markets to gradually adjust to the new tariff regime and avoid sudden price shocks.
Policy response to global oil volatility
The fiscal adjustments come amid heightened global uncertainty triggered by disruptions in energy supply routes linked to tensions in the Middle East, particularly around the Strait of Hormuz, a critical passageway for global crude shipments.
The crisis has rattled oil markets, pushing prices sharply higher in recent weeks. Brent crude surged to as high as $120 per barrel at the height of the disruption before easing below $95 following a brief ceasefire announcement on April 8.
However, renewed tensions have once again sent prices soaring, with Brent crude rising above $102 per barrel and West Texas Intermediate (WTI) climbing to $104.16 as of April 13.
The volatility intensified after reports that former U.S. President Donald Trump ordered naval operations restricting maritime traffic through the Strait of Hormuz following the collapse of peace talks involving the United States and Iran.
What the government hopes to achieve
Officials say the tariff overhaul is designed to cushion the impact of rising global costs, stabilize domestic prices, and support productivity across key sectors including transport, agriculture, manufacturing, and construction.
The 90-day adjustment window is expected to give importers, distributors, and consumers time to adapt before the full impact of the new duty regime is felt across the market.
