Nigeria Approves 2026 Fiscal Policy Measures

Nigeria's federal government has approved the 2026 Fiscal Policy Measures (FPM), replacing the 2023 FPM, with immediate effect from April 1, 2026. Signed by Wale Edun, Minister of Finance, the new policy introduces sweeping tariff adjustments across 127 tariff lines. Key changes include reduced import duties on fully built passenger vehicles (from 70% to 40%), crude palm oil (to 28.75%), bulk rice (to 47.5%), and raw cane sugar (to 55-57.5%). Tariffs on steel products, ceramic tiles, and various electrical and industrial components have also been lowered. Agricultural and manufacturing machinery, railway locomotives, and cargo ships above 500 tonnes now attract zero import duty. The policy also introduces a new excise duty regime and a green tax surcharge, both effective July 1, 2026, with exemptions for vehicles below 2000cc, mass transit buses, and electric vehicles. A 90-day grace period is granted for importers who opened Form 'M' before April 1, 2026. These measures aim to stimulate economic growth, support local industries, and align Nigeria's trade policy with its development priorities and Economic Community of West African States commitments.