The Federal Government has rolled out a new set of economic reforms under the 2026 Fiscal Policy Measures (FPM), introducing wide-ranging adjustments to import tariffs as part of efforts to stimulate growth, support local industries, and balance revenue generation.
The policy, conveyed in an official document dated April 1, 2026, and signed by the Minister of Finance, Wale Edun, replaces the 2023 fiscal framework and targets multiple sectors of the economy.
A central feature of the new policy is the revision of import duties across 127 tariff lines, covering essential goods such as rice, sugar, vehicles, and industrial inputs. According to the government, the changes are intended to “promote and stimulate growth in critical sectors of the economy”.
Key Tariff Adjustments
The revised structure introduces significant reductions across several categories:
Rice (bulk or above 5kg): 47.5% (down from 70%)
Broken rice: 30% (down from 70%)
Crude palm oil: 28.75% (down from 35%)
Raw cane sugar: 55% (down from 70%)
Refined salt: 55% (down from 70%)
Envelopes: 40% (down from 50%)
Diaries and notebooks: 30% (down from 40%)
Ceramic tiles (various types): reduced to between 35% and 46.25%
In the automotive sector, import duties on fully built passenger vehicles—including SUVs and station wagons—have been cut to 40 percent from 70 percent under the previous 2015 framework.
Industrial and Manufacturing Inputs
Tariffs on several industrial materials have also been adjusted to support manufacturing:
Zinc-coated steel sheets: 35% (from 45%)
Aluminum-coated steel coils: 35% (from 45%)
Electroplated steel: 35% (from 45%)
Hot-rolled deformed steel bars: 35% (from 45%)
Steel rods (5.5mm–14mm): 35% (from 45%)
Cold-rolled steel (low carbon): 15%
Additionally, duties on certain machinery and equipment—such as agricultural machines, cargo ships, and railway locomotives—have been reduced to as low as zero percent to encourage infrastructure and industrial development.
New Taxes and Transition Measures
To ensure a smooth transition, the government introduced a 90-day grace period for importers who opened Form ‘M’ before April 1, allowing them to clear goods using the previous tariff rates.
At the same time, a new excise duty regime and a green tax surcharge are scheduled to take effect from July 1, 2026, marking the next phase of fiscal adjustments.
Green Tax Exemptions
Certain categories will be exempt from the green tax surcharge, including:
Vehicles below 2000cc
Mass transit buses
Electric vehicles
Locally manufactured vehicles under specified classifications
Policy Objective
The government explained that the reforms are designed to strike a balance between boosting economic activity and maintaining revenue flows. By reducing tariffs on key imports and industrial inputs, authorities aim to lower production costs, encourage investment, and support domestic industries.
Overall, the 2026 Fiscal Policy Measures represent a strategic shift toward a more growth-oriented tariff regime, while introducing targeted controls to ensure sustainability and long-term economic stability.
