The Federal Government of Nigeria has rolled out a sweeping fiscal reform package set to take effect from July 1, 2026, introducing a new excise duty system alongside a green tax policy aimed at boosting revenue and promoting environmental sustainability.
The reforms were detailed in the 2026 Fiscal Policy Measures circular signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
As part of the overhaul, the government is reducing import duties across 127 tariff categories, replacing the 2023 structure. The goal is to lower costs in key sectors, encourage local production, and stimulate trade.
Under the revised rates:
Import duty on fully built cars, including SUVs, drops from 70% to 40%
Rice duties fall to 47.5%, while broken rice is set at 30%
Crude palm oil tariffs reduce to 28.75% from 35%
Electrical items like fuses now attract 10% duty, down from 20%
Tariffs have also been cut on several industrial and consumer goods such as steel, ceramics, and stationery, making imports potentially cheaper for businesses.
To support infrastructure and industrial growth, the government approved zero import duty on selected items, including:
Railway equipment (SKD/CKD)
Large cargo vessels
Agricultural and manufacturing machinery
Safety equipment
Importers who initiated transactions (Form ‘M’) before April 1 will benefit from a 90-day grace period to adjust to the new system.
Meanwhile, the incoming excise and green tax regime is designed to drive cleaner practices and increase government revenue. Notably, exemptions will apply to:
Vehicles below 2000cc
Electric vehicles
Mass transit buses
Authorities say these combined measures are intended to reduce cost pressures, promote environmentally friendly technology, and strengthen the country’s economic outlook over the long term.