Nigeria's 2026 Fiscal Policy Measures (FPM) circular introduces tariff cuts across 127 lines and a green excise regime effective 1 July 2026, reducing duties on vehicles, rice, and industrial goods whilst exempting electric vehicles and mass transit buses.
Nigeria’s federal government has unveiled sweeping tariff restructuring and environmental tax measures set to commence on 1 July 2026, according to the 2026 Fiscal Policy Measures (FPM) circular issued by Minister of Finance Wale Edun.
The reforms span 127 tariff lines and introduce a green excise regime alongside significant import duty reductions across multiple sectors.
Vehicle and food import duties cut
The new tariff schedule substantially lowers duties on key consumer goods. Fully built passenger vehicles and four-wheel drives fall from 70% to 40%, while rice imports drop to 47.5% from 70%. Broken rice attracts a 30% duty under the revised framework. Crude palm oil duties have been reduced to 28.75%, down from 35%.
Manufacturing and industrial support
Industrial goods receive tariff relief to spur domestic production. Electrical equipment such as fuses will now face a 10% duty instead of a 20%, with steel products, ceramics, and stationery also benefiting from reduced rates.
To accelerate infrastructure development, 0% import duty has been granted for railway locomotives (SKD/CKD form), cargo vessels exceeding 500 tonnes, agricultural and manufacturing machinery, and safety equipment.
Transition measures and green tax implementation
Importers who opened Form “M” documentation before 1 April have been granted a 90-day grace period to adjust to the revised structure. The government has exempted vehicles below 2000cc, electric vehicles, and mass transit buses from the new excise and green tax framework launching in July, positioning the reforms as a dual mechanism for environmental sustainability and fiscal strengthening.
