The Federal Government has approved the implementation of the 2026 Fiscal Policy Measures (FPM), introducing major adjustments to import tariffs across several sectors…. CONTINUE READING.
According to a circular dated April 1, 2026 and signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the Import Adjustment Tax (IAT) on selected goods, including crude palm oil, has been revised to a total effective rate of 28.75%, down from previous higher tariff levels.
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The new policy replaces the 2023 fiscal framework and introduces a national schedule covering 127 tariff lines with reduced import duties aimed at stimulating growth in key sectors of the economy.
Under the revised structure, fully built passenger cars, four-wheel drive vehicles, and station wagons will now attract a 40% total effective tariff, reduced from 70% under the 2015 policy.
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The government also granted a 90-day grace period for importers who had already opened Form M before April 1 to clear goods at the old rates. However, a new excise duty regime alongside a green tax surcharge is scheduled to take effect from July 1, 2026.
The updated tariff list covers a wide range of products, including pharmaceuticals, food items, building materials, and industrial goods. Some key highlights include:
- Anti-malarial drugs: 20%
- Rice (bulk or above 5kg packaging): 47.5% (down from 70%)
- Broken rice: 30% (down from 70%)
- Wheat or meslin flour: 70%
- Crude palm oil: 28.75% (down from 35%)
- Margarine: 40%
- Raw cane sugar (various categories): 55%–57.5% (down from 70%)
- Refined salt: 55% (down from 70%)
- Envelopes: 40% (down from 50%)
- Diaries and notebooks: 30% (down from 40%)
- Ceramic tiles and related products: 35%–46.25% (reduced from higher rates)
- Steel and Industrial Goods
- Zinc-coated steel sheets: 35% (down from 45%)
- Steel coils (aluminium coated): 35% (down from 45%)
- Electroplated steel: 35% (down from 45%)
- Cold-rolled steel: 15%
- Steel rods and bars: 35% (down from 45%)
- Electrical apparatus (fuses, etc.): 10% (down from 20%)
- Railway locomotives (SKD/CKD): 0% (down from 5%)
- Cargo ships above 500 tonnes: 0% (down from 5%)
- Agricultural and manufacturing machinery: 0% (down from 5%)
Medical and industrial equipment: reduced to between 0% and 10% depending on category.
Items Exempted from Green Tax Surcharge
- Vehicles below 2000cc
- Mass transit buses (HS 87.02 category)
- Electric vehicles
- Locally manufactured vehicles across several classifications.
The government said the reforms are designed to balance revenue generation with economic stimulation while encouraging local production and easing pressure on import-dependent sectors.
