The federal government has approved the implementation of the 2026 Fiscal Policy Measures (FPM), which introduce changes to import tariff structures across key sectors of the economy.
The decision was contained in a circular dated April 1, 2026, and signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun. The document stated that the new measures supersede the 2023 Fiscal Policy Measures.
According to the policy, a national list of 127 tariff lines has been reviewed, with reduced import duty rates on several items. It said the adjustments were made to “promote and stimulate growth in critical sectors of the economy”.
Under the revised regime, the Import Adjustment Tax (IAT) on crude palm oil has been fixed at a total effective rate of 28.75 percent, lower than previous tariff levels on the commodity.
Similarly, fully built passenger motor vehicles, including four-wheel drive vehicles and station wagons, will now attract a total effective tariff of 40 percent, down from 70 percent under the 2015 FPM.
The federal government also introduced a 90-day grace period for importers who had already opened Form ‘M’ before April 1, allowing them to clear their goods at the old rates.
However, the circular stated that a new excise duty regime and a green tax surcharge will take effect from July 1, 2026.
The document also listed several items affected by the revised tariff structure. Anti-malarial medicaments will now attract 20 percent duty.
Rice in bulk or in packs above 5kg will be charged 47.5 percent, down from 70 percent, while broken rice is set at 30 percent, also reduced from 70 percent.
Wheat or meslin flour remains at 70 percent, while crude palm oil stands at 28.75 percent, down from 35 percent. Margarine, excluding liquid forms, will attract 40 percent duty.
Raw cane sugar and beet sugar products have been reviewed downward, with rates ranging between 55 percent and 57.5 percent, compared to the previous 70 percent benchmark. Refined salt for human consumption will now attract 55 percent duty.
Other consumer and industrial goods affected include envelopes at 40 percent, diaries and notebooks at 30 percent, unglazed ceramic tiles at 35 percent, glazed ceramic tiles at 46.25 percent, and ceramic cubes under 7cm at 35 percent.
In the steel and construction segment, zinc-coated steel sheets, aluminium-coated steel coils, electrolytically plated steel, hot-rolled steel bars and steel rods will all attract 35 percent duty, while cold-rolled steel with less than 0.25 percent carbon content is pegged at 15 percent.
Electrical and mechanical equipment were also reviewed, with electrical apparatus such as fuses now attracting 10 percent, down from 20 percent.
Railway and tramway locomotives in SKD/CKD form, cargo ships above 500 tonnes, breathing appliances and gas masks, as well as agricultural and manufacturing machinery, will now attract zero percent duty, down from 5 percent.
Modular surgical operating theatres are set at 5 percent, air or vacuum pumps and compressors at 5 percent, while automatic circuit breakers and lamp holders will now attract 10 percent each.
The policy also exempted several categories of vehicles and equipment from the proposed green tax surcharge.
These include vehicles below 2000cc, mass transit buses under heading 87.02, electric vehicles, and locally manufactured vehicles under headings 87.06, 87.07, 87.08, 87.10, 87.11, 87.12 and 87.13.
