By Jide Akinseye
In a bid to cushion rising food prices and stimulate economic activity, the Federal Government has announced sweeping tariff reductions on key food imports under its newly approved 2026 Fiscal Policy Measures.
The Federal Government has therefore cut import tariffs on crude palm oil from 35 per cent to 28.75 per cent, representing a 17 per cent reduction, as part of its newly introduced Fiscal Policy Measures (FPM) for 2026.
The policy also includes reductions on import duties for essential food items such as raw cane sugar, bulk rice and refined salt intended for human consumption.
Details of the changes were contained in a circular dated April 1, 2026, and signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun. The new directive replaces the 2023 Fiscal Policy Measures.
According to the document, a revised national tariff schedule covering 127 items has been introduced, with lower import duty rates aimed at boosting growth in critical sectors of the economy.
The Import Adjustment Tax (IAT) on commodities such as crude palm oil has also been reviewed downward, aligning Nigeria’s trade framework with the ECOWAS Common External Tariff.
Other staple imports witnessed significant tariff cuts. Bulk rice in quantities above 5kg now attracts a 47.5 per cent duty, reduced from 70 per cent, while the duty on broken rice has been lowered to 30 per cent from 70 per cent.
However, some items retained their previous rates, including wheat or meslin flour at 70 per cent, margarine (excluding liquid) at 40 per cent, and refined salt for human consumption at 55 per cent.
Similarly, tariffs on raw cane sugar (beet sugar) now stand at 57.5 per cent, raw cane sugar (other) at 55 per cent, and granulated or powdered sugar at 57.5 per cent—down from the earlier 70 per cent.
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 the old tariff rates.
In addition, the policy signals the introduction of new excise duties and a green tax surcharge scheduled to take effect from July 1, 2026.
Economic experts say the tariff reductions are expected to help moderate inflation, support economic growth, and provide some relief to Nigerians facing high living costs.
