The Federal Government has introduced a new set of fiscal policy measures for 2026, unveiling sweeping tariff adjustments aimed at boosting economic activity and supporting critical sectors.
According to an official circular dated April 1, 2026, and signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the new policy replaces the 2023 fiscal framework.
A key highlight of the reform is a revised national tariff schedule covering 127 items, with reduced import duty rates designed to stimulate growth, lower production costs, and encourage investment across key industries.
Among the notable changes, the import adjustment tax on crude palm oil has been reduced to 28.75 percent, while tariffs on fully built passenger vehicles, including four-wheel drives and station wagons, have been cut to 40 percent from the previous 70 percent benchmark.
The government also approved a 90-day grace period for importers who opened Form ‘M’ before April 1, allowing them to clear goods at the previous rates.
However, additional changes are expected, as a new excise duty regime and a green tax surcharge are scheduled to take effect from July 1, 2026.
Summary of 2026 Tariff Adjustments
| Item | New Tariff (%) | Previous Tariff (%) |
|---|---|---|
| Anti-malarial medicaments | 20% | - |
| Rice (bulk or >5kg) | 47.5% | 70% |
| Broken rice | 30% | 70% |
| Wheat/Meslin flour | 70% | - |
| Crude palm oil | 28.75% | 35% |
| Margarine (excluding liquid) | 40% | - |
| Raw cane sugar (Beet sugar) | 57.5% | 70% |
| Raw cane sugar (Other) | 55% | 70% |
| Cane/Beet sugar (Powder/Granule) | 57.5% | 70% |
| Refined salt (for consumption) | 55% | 70% |
| Envelopes | 40% | 50% |
| Diaries/Notebooks | 30% | 40% |
| Unglazed ceramic tiles | 35% | 40% |
| Glazed ceramic tiles | 46.25% | 55% |
| Ceramic cubes (<7cm) | 35% | 40% |
| Zinc-coated steel sheets | 35% | 45% |
| Steel coils (aluminium coated) | 35% | 45% |
| Electrolytically plated steel | 35% | 45% |
| Cold-rolled steel (<0.25% carbon) | 15% | - |
| Hot-rolled steel bars (deformed) | 35% | 45% |
| Steel rods (5.5mm – 14mm) | 35% | 45% |
| Electrical apparatus (fuses, etc.) | 10% | 20% |
| Railway/Tramway locomotives (SKD/CKD) | 0% | 5% |
| Cargo ships (>500 tonnes) | 0% | 5% |
| Breathing appliances & gas masks | 0% | 5% |
| Agriculture/Manufacturing machinery | 0% | 5% |
| Modular surgical operating theatre | 5% | 20% |
| Air/Vacuum pumps & compressors | 5% | 10% |
| Automatic circuit breakers | 10% | 20% |
| Lamp holders | 10% | 20% |
Green Tax Exemptions
- Vehicles below 2000cc
- Mass transit buses
- Electric vehicles
- Locally manufactured vehicle components
As implementation begins, stakeholders across the economy will be watching closely to assess the policy’s impact on prices, trade flows, and overall economic performance.