The Federal Government has introduced new fiscal policy measures for 2026, reducing import tariffs on about 127 product lines, including vehicles, sugar, crude palm oil, rice, and other key goods, in a move aimed at stimulating economic growth and easing costs in strategic sectors.

Approved by Finance Minister Wale Edun, the revised tariff regime took effect from April 1, 2026, replacing the 2023 framework. Under the new structure, import duty on fully built passenger vehicles, SUVs, and station wagons has been cut to 40 percent, down from the previous 70 percent rate set in 2015.

Crude palm oil tariffs have also been lowered to 28.75 percent from 35 percent, while raw cane sugar rates have dropped significantly, with some categories reduced from 70 percent to as low as 55 percent.

Rice imports also benefit from reduced duties, with bulk and small-pack rice tariffs falling to 47.5 percent, and broken rice reduced to 30 percent.Other revised items include refined salt, margarine, ceramic tiles, steel sheets, envelopes, and notebooks, all of which now carry lower import charges under the updated fiscal measures.

To ease the transition, the government granted a 90-day grace period for importers who opened Form M before April 1, allowing them to clear goods at old rates. A new excise duty system and green tax surcharge are scheduled to begin on July 1, 2026.