The Federal Government has launched the 2026 Fiscal Policy Measures (FPM), a strategic overhaul of import tariffs designed to accelerate national economic growth.
Formally approved on April 1, 2026, by Finance Minister Wale Edun, this directive supersedes the 2023 policy framework.
Central to this update is a comprehensive tariff review affecting 127 items, including staples like rice and sugar, as well as vehicles and industrial raw materials.
According to the government, these duty reductions are specifically engineered to “promote and stimulate growth in critical sectors.”
Under the revised regime, the Import Adjustment Tax, IAT, on products like crude palm oil has been set at a total effective rate of 28.75 percent, down from higher rates under previous tariff structures.
In the automotive sector, tariffs on fully built passenger vehicles, including four-wheel drives and station wagons, have been reduced to 40 percent from 70 percent as stipulated in the 2015 FPM.
To ease the transition, the government granted a 90-day grace period for importers who opened Form ‘M’ before April 1, allowing them to clear goods at the old rates.
However, the policy also introduces a new excise duty regime alongside a green tax surcharge, both scheduled to take effect from July 1, 2026.
Key Tariff Adjustments:
Here is a summary of details of the gazetted list outlining revised duties on several goods:
Antimalarial medicaments: 20%
Rice (bulk or >5kg): 47.5% (from 70%)
Broken rice: 30% (from 70%)
Wheat or meslin flour: 70%
Crude palm oil: 28.75% (from 35%)
Raw cane sugar: 55% (from 70%)
Cane/beet sugar (powder/granule): 57.5% (from 70%)
Margarine (excluding liquid): 40%
Refined salt: 55% (from 70%)
Envelopes: 40% (from 50%)
Diaries/notebooks: 30% (from 40%)
Unglazed ceramic tiles: 35% (from 40%)
Glazed ceramic tiles: 46.25% (from 55%)
Ceramic cubes (<7 cm): 35% (from 40%)
Steel and Industrial Inputs
Zinc-coated steel sheets: 35% (from 45%)
Aluminum-coated steel coils: 35% (from 45%)
Electroplated steel: 35% (from 45%)
Cold-rolled steel (<0.25% carbon): 15% Hot-rolled deformed steel bars: 35% (from 45%) Steel rods (5.5mm–14mm): 35% (from 45%) Other Key Adjustments: Electrical apparatus (e.g., fuses): 10% (from 20%) Railway/tramway locomotives (SKD/CKD): 0% (from 5%) Cargo ships (>500 tonnes): 0% (from 5%)
Breathing appliances and gas masks: 0% (from 5%)
Agricultural and manufacturing machinery: 0% (from 5%)
Modular surgical operating theaters: 5% (from 20%)
Air/vacuum pumps and compressors: 5% (from 10%)
Automatic circuit breakers: 10% (from 20%)
Lamp holders: 10% (from 20%)
Green Tax Exemptions:
The policy also outlines categories exempted from the planned green tax surcharge. These include –
Vehicles below 2000cc
Mass transit buses (heading 87.02)
Electric vehicles
Locally manufactured vehicles under specified headings (87.06–87.13)
The government said the overall reforms are part of efforts to balance revenue generation with economic stimulation, while supporting local industries and easing the cost of critical imports.
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