Good news for Nigerians as the Federal Government cuts tariffs on food items and vehicles

The Federal Government of Nigeria has reduced the taxes paid on imported goods like rice, sugar, palm oil and vehicles.

They released a detailed list of tariff adjustments covering a wide range of imported goods under the newly approved 2026 Fiscal Policy Measures (FPM).

This means these products may become cheaper or easier to import, depending on how traders respond in the market.

While some tariffs have been reduced significantly, others remain unchanged or relatively high, depending on the product category.

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• Fully built passenger motor vehicles, including four-wheel drive vehicles and station wagons: 40% total effective tariff (reduced from 70%)

• Rice (in bulk or packaging of 5kg and above): 47.5% (down from 70%)

• Broken rice: 30% (down from 70%)

• Wheat or meslin flour: 70% (unchanged)

• Crude palm oil: 28.75% (down from 35%)

• Margarine (excluding liquid): 40%

• Raw cane sugar (beet sugar): 57.5% (down from 70%)

• Raw cane sugar (other types): 55% (down from 70%)

• Cane/beet sugar (powder or granules): 57.5% (down from 70%)

• Refined salt (for human consumption): 55% (down from 70%)

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• Anti-malarial medicaments: 20%

• Envelopes: 40% (down from 50%)

• Diaries/notebooks: 30% (down from 40%)

• Unglazed ceramic tiles: 35% (down from 40%)

• Glazed ceramic tiles: 46.25% (down from 55%)

• Ceramic cubes (below 7cm): 35% (down from 40%)

• Zinc-coated steel sheets: 35% (down from 45%)

The policy also provides a 90-day grace period for importers who had already opened Form ‘M’ before April 1.

Form M is a permit and approval document importers must process before importing goods into Nigeria.

This allows them to clear their goods at the previous tariff rates, helping to reduce disruptions in the import supply chain.

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Despite the tariff cuts, the government has also introduced new fiscal measures.

A new excise duty regime and a green tax surcharge are scheduled to take effect from July 1, 2026, marking another phase of the broader fiscal reform agenda.

The new tariff structure represents one of Nigeria’s most extensive import duty reviews in recent years. 

While the reductions are expected to ease pressure on food prices and vehicle costs, some items remain heavily taxed, reflecting the government’s attempt to balance revenue generation with affordability.