FG Slashes Import Tariffs On Cars, Palm Oil, Others In Bold 2026 Fiscal Overhaul, Customs Urged To Upgrade System
In a major boost for consumers and businesses, the Federal Government of Nigeria has rolled out sweeping tariff cuts on key imports including cars, palm oil, and sugar under the newly approved 2026 Fiscal Policy Measures (FPM), as detailed in an official circular from the Ministry of Finance.
The circular, dated April 1, 2026, and signed by Hon. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, announces reductions across 127 tariff lines to stimulate growth in automotive, agriculture, and manufacturing sectors.
This new policy fully supersedes the 2023 FPM.
According to it, passenger vehicles (fully built, four-wheel drives, station wagons): Down to a total effective rate of 40% from 70%, potentially lowering car prices significantly.
Crude palm oil: Reduced to 28.75% from 35%, easing costs for cooking oil and industrial uses. Raw cane sugar (beet and other variants): Slashed to 55-57.5% from 70%, benefiting food processors and bakers nationwide.
Other affected items include rice (47.5%), margarine, steel products, machinery, and anti-malarial medicaments (20%). Importers with Form ‘M’ opened before April 1 get a 90-day grace period to clear goods at old rates.
A new excise duty regime and green tax surcharge – excluding vehicles under 2000cc, electric vehicles, and mass transit buses – will kick in from July 1, 2026.
The Cable online reports also that the Nigeria Customs Service (NCS) has been ordered to update systems immediately, with all agencies reporting challenges within 30 days.
Economists hail the moves as a timely response to inflation pressures, though some warn of potential revenue shortfalls. Full tariff schedules are attached to the circular
2026 FPM delivers immediate relief on cars, palm oil, and sugar tariffs via 127 revised lines, effective now with a grace period.
Aims to drive economic growth; green taxes delayed to July 2026.
Official implementation underway – watch for price changes at dealerships and markets soon.