(Taiwo Oyedele. Photo by Guardian News)
The Federal Government has announced sweeping reductions to import duties on essential goods, ranging from food staples to passenger vehicles.
The new rates, aimed at combating the rising cost of living in the country, take effect this July. The 2026 Fiscal Policy Measures (FPM) were approved by the Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, on Wednesday.
The new policy slashes duties on a wide range of items central to household consumption and industrial activity, targeting a staggering 127 tariff lines with reduced rates.
The plan reflects a clear attempt by the Federal Government to ease the financial strain on Nigerian families.
For staple foods, the results are notable: the duty on bulk rice has been almost halved, from 70 per cent to 47.5 per cent, while broken rice has seen an even steeper reduction to 30 per cent, in a direct attempt to lower the price of the nation’s most critical food item.
Raw cane sugar duties have also been compressed to between 55 per cent and 57.5 per cent, while crude palm oil now enters at a rate of 28.75 per cent, down from 35 per cent.
These cuts are designed to reduce input costs for everything from a family’s daily meals to commercial food production.
Transportation and industrial sectors have also come under focus.
The duty on passenger vehicles has been slashed from 70 per cent to 40 per cent, a move that could lower the cost of car ownership.
More significantly, the government has fully exempted mass transit buses and electric vehicles from import duties, as part of a green tax measure aimed at reducing transport costs and encouraging cleaner energy use.
Similarly, manufacturing machinery now enjoys a zero per cent duty, signalling government intent to revitalise the industrial sector and reduce production costs.
While the tariff cuts offer immediate hope for relief, analysts and commentators have raised critical concerns about policy consistency and the future of domestic production.
Notwithstanding, Nigerians are optimistic about a possible easing of pressure on the transport sector and, in the long term, a moderation in the cost of moving goods and people across the country, with possible knock-on effects on food prices and bus fares.
