FG Cuts Tariffs On Cars, Palm Oil, Sugar, Others In New Fiscal Policy Measures

The federal government has approved the implementation of 2026 fiscal policy measures (FPM), which include significant tariff amendments.

In a circular seen by TheCable dated April 1, 2026, and signed by Wale Edun, the minister of finance and coordinating minister of the economy, the government announced that the new measures supersede the 2023 FPM.

The policy includes a national list of 127 tariff lines with reduced import duty rates designed to ā€œpromote and stimulate growth in critical sectors of the economyā€.

According to the document, the import adjustment tax (IAT) on items like crude palm oil has been set at a total effective rate of 28.75 percent, down from previous high-tariff regimes.

Similarly, fully built units passenger motor vehicle, four-wheel drive motor vehicle and station wagon now attract a total effective tariff of 40 percent, a reduction from the 70 percent listed in the 2015 FPM.

The government also granted a 90-day grace period for importers who had opened Form ā€˜M’ before April 1 to clear their goods at prevailing rates.

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However, a new excise duty regime and the green tax surcharge are set to take effect from July 1, 2026.

Here are some of the items from the gazette:

1. Anti-malarial medicaments: 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)

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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)

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14. Glazed ceramic tiles: 46.25 percent (reduced from 55 percent)

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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)

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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,

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