The Federal Government has approved the 2026 Fiscal Policy Measures (FPM), introducing broad changes to import tariffs aimed at boosting growth across critical sectors of the economy.

The approval was contained in a document dated April 1, 2026, and signed by the Minister of Finance, Wale Edun. The new framework replaces the 2023 fiscal policy.

A key feature of the policy is the review of import duties across 127 tariff lines, covering essential commodities such as rice, sugar, vehicles, and industrial inputs. The government said the adjustments are designed to promote economic activity and support strategic sectors.

Under the revised structure, the Import Adjustment Tax (IAT) on products like crude palm oil has been reduced to a total effective rate of 28.75 percent, down from previous higher levels.

In the automotive segment, tariffs on fully built passenger vehicles, including four-wheel drives and station wagons, have been cut from 70 percent to 40 percent, marking a significant reduction from the 2015 regime.

To ease implementation, a 90-day grace period has been granted to importers who opened Form ‘M’ before April 1, allowing them to clear goods at the previous rates.

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

Key tariff revisions include:

• Antimalarial medicaments: 20%
• Rice (bulk or above 5kg): 47.5% (from 70%)
• Broken rice: 30% (from 70%)
• Wheat or meslin flour: 70%
• Crude palm oil: 28.75% (from 35%)
• Raw cane sugar: 55% (from 70%)
• Cane/beet sugar (powder/granule): 57.5% (from 70%)
• Margarine (excluding liquid): 40%
• Refined salt: 55% (from 70%)
• Envelopes: 40% (from 50%)
• Diaries/notebooks: 30% (from 40%)
• Unglazed ceramic tiles: 35% (from 40%)
• Glazed ceramic tiles: 46.25% (from 55%)
• Ceramic cubes (below 7cm): 35% (from 40%)

Steel and industrial inputs:

• Zinc-coated steel sheets: 35% (from 45%)
• Aluminium-coated steel coils: 35% (from 45%)
• Electroplated steel: 35% (from 45%)
• Cold-rolled steel (below 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 or vacuum pumps and compressors: 5% (from 10%)
• Automatic circuit breakers: 10% (from 20%)
• Lamp holders: 10% (from 20%)

Green tax exemptions:

The policy also specifies categories exempted from the proposed green tax surcharge, including vehicles below 2000cc, mass transit buses, electric vehicles, and locally manufactured vehicles within designated classifications.

The government said the reforms are part of a broader strategy to balance revenue generation with economic stimulation while enhancing support for local industries.