The Federal Government has approved new fiscal policy measures for 2026, introducing major tariff reductions across several imported goods.
In a circular dated April 1, 2026, signed by Wale Edun, the government confirmed that the updated policy replaces the 2023 fiscal framework.
Under the new structure, the import adjustment tax on items such as crude palm oil has been reduced to an effective rate of 28.75 percent, reflecting a shift from previously higher tariffs.
The policy also features a revised national list covering 127 tariff lines with lower import duties aimed at boosting growth in key sectors of the economy.
Additionally, tariffs on fully built passenger vehicles, including four-wheel drives and station wagons, have been cut to 40 percent from the previous 70 percent set in 2015.
To ease the transition, importers who opened Form ‘M’ before April 1 have been granted a 90-day window to clear goods at the old rates.
Meanwhile, the government announced that a new excise duty system and green tax surcharge will take effect from July 1, 2026.
Here are some of the items from the gazette:
1. Anti-malarial medications: 20 percent
2. Rice (In bulk or packing >5kg): 47.5 percent (reduced from 70 percent)
3. Broken rice: 30 percent (teduced from 70 percent)
4. Wheat or Meslin flour: 70 percent
5. Crude palm oil: 28.75 percent (reduced from 35 percent)
6. Margarine (excluding liquid): 40 percent
7. Raw cane sugar (Beet sugar): 57.5 percent (reduced from 70 percent)
8. Raw cane sugar (Other): 55 percent (reduced from 70 percent)
9. Cane/Beet sugar (Powder/Granule): 57.5 percent (reduced from 70 percent)
10. Refined salt (for human consumption): 55 percent (reduced from 70 percent)
11. Envelopes: 40 percent (reduced from 50 percent)
12. Diaries/Notebooks: 30 percent (reduced from 40 percent)
13. Unglazed ceramic tiles: 35 percent (reduced from 40 percent)
14. Glazed ceramic tiles: 46.25 percent (reduced from 55 percent)
15. Ceramic cubes (<7cm): 35 percent (reduced from 40 percent)
STEEL BARS AND COILS
16. Zinc-coated steel sheets: 35 percent (reduced from 45 percent)
17. Steel coils (aluminium coated): 35 percent (reduced from 45 percent)
18. Electrolytically plated steel: 35 percent (reduced from 45 percent)
19. Cold-rolled steel (<0.25 percent carbon): 15 percent
20. Hot-rolled steel bars (Deformed): 35 percent (reduced from 45 percent)
21. Steel rods (Diameter 5.5mm – 14mm): 35 percent (reduced from 45 percent)
22. Electrical Apparatus (Fuses, etc.) 10 percent (reduced from 20 percent)
23. Railway/Tramway Locomotives (SKD/CKD) 0 percent (reduced from 5 percent)
24. Cargo Ships (>500 tonnes) 0 percent (reduced from 5 percent)
25. Breathing appliances & Gas masks 0 percent (reduced from 5 percent)
26. Agriculture/manufacturing machinery 0 percent (reduced from 5 percent)
27. Modular surgical operating theatre 5 percent (reduced from 20 percent)
28. Air or vacuum pumps/compressors 5 percent (reduced from 10 percent)
29. Automatic circuit breakers 10 percent (reduced from 20 percent)
30. Lamp holders 10 percent (reduced from 20 percent)
ITEMS EXCLUDED FROM GREEN TAX SURCHARGE
1. Vehicles below 2000cc
2. Vehicles of heading 87.02 (mass transit buses)
3. Electric Vehicles
4. Locally manufactured vehicles heading 87.06, 87.07, 87.08, 87.10, 87.11, 87.12, 87.13.