FG cuts tariffs on rice, cars, sugar 

FG cuts tariffs on rice, cars, sugar 

The federal government has approved significant tariff amendments as it orders for the implementation of the 2026 Fiscal Policy Measures (FPM).

In a circular dated April 1, 2026, signed by Wale Edun, Minister of Finance and Coordinating Minister of the Economy, the government indicated that the that the new measures replaces the 2023 FPM.

The 2026 Fiscal Policy Measures (FPM) contains a list of 127 tariff lines with reduced import duty rates.

The circular explained that the reduction was to “promote and stimulate growth in critical sectors of the economy”.

According to the document, Import Adjustment Tax (IAT) on items like rice, vehicles and crude palm oil has been set at reduced rates.

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

Other items with reduced charges include anti-malarial medicaments, 20 percent; rice , 47.5 percent from 70 percent; broken rice, 30 percent;  wheat, 70 percent ; crude palm oil: 28.75 percent from 35 percent.

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

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