The Federal Government has approved the implementation of the 2026 Fiscal Policy Measures (FPM), introducing wide-ranging adjustments to import tariffs aimed at stimulating growth across key sectors of the economy.

The approval was conveyed in a document dated April 1, 2026, and signed by the Minister of Finance, Wale Edun. The new framework replaces the 2023 Fiscal Policy Measures.

A central feature of the policy is the revision of import duties across 127 tariff lines, covering essential commodities such as rice, sugar, pharmaceuticals, vehicles, and industrial inputs. According to the government, the reductions are intended to “promote and stimulate growth in critical sectors of the economy.”

Under the revised regime, the Import Adjustment Tax (IAT) on products such as crude palm oil has been set at an effective rate of 28.75 percent, representing a reduction from previous levels.

In the automotive sector, tariffs on fully built passenger vehicles—including four-wheel drives and station wagons—have been reduced to 40 percent from 70 percent, as previously stipulated under the 2015 FPM.

To facilitate a smooth transition, the government has granted a 90-day grace period for importers who opened Form ‘M’ before April 1, allowing them to clear goods using the old tariff rates.

However, the policy also introduces a new excise duty framework alongside a green tax surcharge, both scheduled to take effect from July 1, 2026.

Key Tariff Adjustments

Revised import duties on selected goods include:

* Antimalarial medicaments: 20%

* Rice (bulk or above 5kg): 47.5% (down from 70%)

* Broken rice: 30% (down from 70%)

* Wheat or meslin flour: 70%

* Crude palm oil: 28.75% (down from 35%)

* Raw cane sugar: 55% (down from 70%)

* Refined sugar (powder/granules): 57.5% (down from 70%)

* Margarine (excluding liquid): 40%

* Refined salt: 55% (down from 70%)

* Envelopes: 40% (down from 50%)

* Diaries and notebooks: 30% (down from 40%)

* Ceramic tiles (various categories): reduced to between 35% and 46.25%

Steel and Industrial Inputs

* Zinc-coated steel sheets: 35% (from 45%)

* Aluminum-coated steel coils: 35% (from 45%)

* Electroplated steel: 35% (from 45%)

* Cold-rolled steel (<0.25% carbon): 15%

* Hot-rolled deformed steel bars: 35% (from 45%)

* Steel rods (5.5mm–14mm): 35% (from 45%)

Other Adjustments

* Electrical apparatus (e.g., fuses): 10% (from 20%)

* Railway/tramway locomotives (SKD/CKD): 0% (from 5%)

* Cargo ships (above 500 tonnes): 0% (from 5%)

* Breathing appliances and gas masks: 0% (from 5%)

* Agricultural and manufacturing machinery: 0% (from 5%)

* Modular surgical operating theatres: 5% (from 20%)

* Air and vacuum pumps: 5% (from 10%)

* Automatic circuit breakers: 10% (from 20%)

* Lamp holders: 10% (from 20%)

Green Tax Exemptions

The policy outlines exemptions from the proposed green tax surcharge, including:

* Vehicles below 2000cc

* Mass transit buses

* Electric vehicles

* Locally manufactured vehicles under specified classifications

The government stated that the reforms are designed to balance revenue generation with economic expansion, while supporting local industries and reducing the cost of critical imports.