FG approves 2026 Fiscal Policy Measures, cuts tariffs on cars, others

The Federal Government has approved the implementation of the 2026 Fiscal Policy Measures, including new tariff amendments and excise duties on beverages and tobacco products, taking effect from 1 April.

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In a document issued by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, seen by PREMIUM TIMES on Friday, the government policy introduces Supplementary Protection Measures (SPM) in line with the ECOWAS Common External Tariff (CET) 2022–2027.

The Policy Measures are for the implementation of the ECOWAS Common External Tariff (CET) 2022 – 2027 and excise duties on non- alcoholic beverages, alcoholic beverages, cigarettes and tobacco products, as well as Green Tax Surcharge.

These include an Import Adjustment Tax (IAT) on 192 tariff lines, an import prohibition list covering 17 items from non-ECOWAS countries, and a national list of 127 items with reduced import duties to support key sectors of the economy.

“However, with effect from January 2027, all Import Adjustment Taxes (IATs) except for products on the African Continental Free Trade Area (AfCFTA) 3 percent list, shall be gradually reduced on an annual basis until full elimination to 0 per cent by 2036, in line with Nigeria’s commitments to ECOWAS/AfCFTA,” the document read.

Details shows that the import adjustment tax (IAT) on items such as crude palm oil has been pegged at a total effective rate of 28.75 per cent, a decline from previous high-tariff regimes.

Similarly, fully-built units of passenger motor vehicle, four-wheel drive motor vehicle, and station wagon now attract a total effective tariff of 40 per cent, indicating a slash from the previous rate of 70 per cent.

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The approval also covers the Import Prohibition list (Trade), which applies only to certain goods originating from non-ECOWAS Member States.

This consists of 17 items, including purebred breeding animals (Cattle), Maize (corn) starch, parts of bovine animals, sheep or goats, other than those of heading, Petroleum Oils containing PCBs, PCTs, and PBBs, and so on.

The approved SPM also includes a national list consisting of items with reduced import duty rates to promote and stimulate growth in critical sectors of the economy, consisting of 127 tariff lines.

According to the Finance Minister, the excise duty on Green Tax Surcharge will take effect from 1 July, while the rates for 2027 and 2028 are scheduled to take effect from 1 January of each year.

“A grace period of ninety (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 on this circular shall therefore take effect from 1 July, 2026, while the rates for 2027 and 2028 shall take effect on 1st January of each year.”

Waste Polyethylene

As part of the measures, Waste Polyethylene Terephthalate (rPET) has been added to the export prohibition list.

The government also granted a 90-day window for importers with existing Form ‘M’ and irrevocable trade agreements before 1 April, 2026, to clear goods under the old duty rates.

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However, all new import transactions from that date will be subject to the revised tariff regime.

The new fiscal measures will be published in the Official Gazette, with authorities urging strict compliance.

“These Fiscal Policy Measures, which supersede the 2023 Fiscal Policy Measures, shall be published in the Official Federal Government Gazette,” Mr Edun said.