The Federal Government has rolled out a fresh set of fiscal reforms under its 2026 Fiscal Policy Measures, reducing tariffs on vehicle imports while introducing new excise duties on beverages and tobacco products.
The reforms, approved by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, took effect from April 1 and are aimed at aligning Nigeria’s trade structure with the ECOWAS Common External Tariff framework while boosting key sectors of the economy.
Central to the policy is a significant reduction in import duties on fully built vehicles. According to the document, tariffs on passenger cars, four-wheel-drive vehicles, and station wagons have been cut to an effective 40 per cent, down from 70 per cent.
The policy also introduces Supplementary Protection Measures, including an Import Adjustment Tax affecting 192 tariff lines, alongside an import prohibition list covering 17 items from non-ECOWAS countries. In addition, a national list of 127 items now enjoys reduced import duties.
Similarly, crude palm oil imports will now attract a 28.75 per cent effective tariff rate, reflecting a downward review from previous levels.
Beyond tariffs, the government approved new excise duties targeting non-alcoholic and alcoholic beverages, cigarettes, and tobacco products. A Green Tax Surcharge is also scheduled to take effect from July 1, 2026.
The document stated, “A grace period of 90 days commencing from the date of this circular is hereby granted to all importers, manufacturers, and service providers before the implementation of the new excise duty rates.”
It added, “The new excise duty rates shall therefore take effect from July 1, 2026, while the rates for 2027 and 2028 shall take effect on January 1 of each year.”
As part of broader trade controls, the policy includes an updated import prohibition list for certain goods from outside ECOWAS and adds waste polyethylene terephthalate to the export prohibition list.
To ease the transition, importers with existing Form ‘M’ and irrevocable trade agreements concluded before April 1 will be allowed to clear goods under the old tariff regime within a 90-day window. However, all new transactions will be subject to the revised rates.
Looking ahead, the government signalled a phased reduction of Import Adjustment Taxes starting from January 2027, excluding items under the AfCFTA three per cent list, with full elimination expected by 2036.
“However, with effect from January 2027, all Import Adjustment Taxes, except for products on the AfCFTA three per cent list, shall be gradually reduced annually until full elimination by 2036,” the document added.
The Federal Government said the reforms, to be published in the official gazette, are expected to improve trade compliance, protect domestic industries, and support long-term economic growth.
