FG Approves 2026 Fiscal Policy Measures, Reduces Tariffs on Vehicles and Other Imports

The Federal Government has approved the 2026 Fiscal Policy Measures, introducing revised tariffs, excise duties, and trade regulations effective from April 1, 2026.

The new framework, outlined in a document issued by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, includes adjustments to import duties, excise taxes on beverages and tobacco products, and the implementation of supplementary protection measures aligned with the Economic Community of West African States Common External Tariff (CET) 2022–2027.

Under the policy, an Import Adjustment Tax (IAT) has been applied to 192 tariff lines, while a national list of 127 items will benefit from reduced import duties to support key sectors. In addition, 17 items originating from non-ECOWAS countries have been placed on an import prohibition list.

The government also stated that, starting January 2027, Import Adjustment Taxes will be gradually reduced annually and phased out completely by 2036, except for products covered under the African Continental Free Trade Area three percent list.

Revised tariff rates show reductions in key categories. For example, crude palm oil now carries a lower effective tariff, while fully built passenger vehicles, including SUVs and station wagons, now attract a reduced rate compared to previous levels.

The measures further introduce supplementary protection policies, including reduced duties on selected items to stimulate growth in critical sectors of the economy.

Excise duties under the Green Tax Surcharge will take effect from July 1, 2026, with additional rate adjustments scheduled for January 2027 and January 2028. A 90-day grace period has been granted to importers, manufacturers, and service providers before the new excise rates take effect.

The policy also adds recycled polyethylene terephthalate (rPET) to the export prohibition list.

To ease the transition, importers with existing Form ‘M’ documentation and binding trade agreements before April 1, 2026, are allowed a 90-day window to clear goods under the previous duty structure. However, all new import transactions from that date will follow the updated tariff regime.

The government noted that the new measures will be published in the Official Federal Government Gazette and emphasized the importance of compliance.

“These Fiscal Policy Measures, which replace the 2023 Fiscal Policy Measures, will be published in the Official Federal Government Gazette,” Mr. Edun said.

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