ABUJA, Nigeria (VOICE OF NAIJA)- The Federal Government has approved a set of new fiscal reforms, including a reduction in vehicle import tariffs and the introduction of fresh excise duties on beverages and tobacco products, as part of the 2026 Fiscal Policy Measures.
In a document released by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the government explained that the measures, which took effect from April 1, are aimed at aligning with the ECOWAS Common External Tariff framework while supporting key sectors of the economy.
The policy introduces Supplementary Protection Measures such as an Import Adjustment Tax affecting 192 tariff lines, an import prohibition list covering 17 items from non-ECOWAS countries, and a national list of 127 items with reduced duties.
Giving further details, the document stated, “Fully built units of passenger motor vehicles, four-wheel-drive motor vehicles, and station wagons now attract a total effective tariff of 40 per cent,” down from the previous 70 per cent.
In the same vein, crude palm oil imports now carry a 28.75 per cent effective rate, reflecting a reduction from earlier higher tariff levels.
READ ALSO: Nigeria Customs Revokes Import Declarations
The government also approved excise duties on both non-alcoholic and alcoholic beverages, cigarettes, and tobacco products, in addition to a Green Tax Surcharge scheduled to take effect from July 1, 2026.
The document stated, “A grace period of 90 days commencing from the date of this circular is hereby granted to all importers, manufacturers, and service providers before the implementation of the new excise duty rates.”
“The new excise duty rates shall therefore take effect from July 1, 2026, while the rates for 2027 and 2028 shall take effect on January 1 of each year.”
The policy also includes an import prohibition list targeting specific goods from non-ECOWAS countries, as well as the addition of waste polyethylene terephthalate to the export prohibition list.
On transitional arrangements, the government noted that importers with existing Form ‘M’ and irrevocable trade agreements prior to April 1 would be allowed to clear goods under the previous rates within a 90-day window, while new transactions would fall under the revised framework.
“However, with effect from January 2027, all Import Adjustment Taxes, except for products on the AfCFTA three per cent list, shall be gradually reduced annually until full elimination by 2036,” the document added.
The Federal Government stated that the measures, which will be published in the official gazette, are expected to improve trade compliance, safeguard local industries, and support long-term economic growth.