By Doris Onyekachi
The Federal Government has announced substantial reductions in import tariffs on vehicles, food items, medicines, and other essential commodities under the 2026 Fiscal Policy Measures. The measure is intended to stimulate economic growth and reduce the cost of critical goods.
The policy, which was approved in a document dated 1st April 2026 and signed by the Minister of Finance, Wale Edun, supersedes the 2023 fiscal framework.
As outlined in the document, the new measures provide for the review of 127 tariff lines, which include rice, sugar, vehicles, and industrial inputs. Government explained that the revisions are aimed at improving productivity and strengthening key sectors of the economy.
A notable amendment is the reduction of the Import Adjustment Tax on crude palm oil to an effective rate of 28.75 percent. In addition, tariffs on fully assembled passenger vehicles, including four-wheel drives and station wagons, have been lowered from 70 percent to 40 percent.
To facilitate a smooth transition, importers who initiated Form ‘M’ prior to 1st April have been granted a 90-day grace period to clear consignments at the previous rates. While the policy further introduces a revised excise duty regime and a green tax surcharge, both of which are scheduled to take effect on 1st July 2026.
According to the government, the reforms are intended to achieve a balance between revenue generation and economic expansion, while simultaneously promoting local production and alleviating financial pressure on consumers.
* Doris is of the Ministry of Information, Anambra State*
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