What attracts the most attention from the market is the decline in the tax burden on complete vehicles: for "fully imported passenger cars"(including four-wheel drive vehicles, station wagons, etc.), the import tariff rate has been reduced from 70% under the 2015 policy to 40%...

According to the latest 2026 fiscal policy circular issued by the federal government of Nigeria, the Nigerian government has approved tariff reductions on a number of key imported commodities, including complete vehicles, rice, palm oil, sugar, etc., intended to stimulate economic growth and support key industries. The circular was signed by Wale Edun, Minister of Finance and Minister of Economic Coordination, and clarified that the new policy framework will replace the fiscal guidance for 2023.

The circular shows that the core of this round of adjustment is the revised national tariff list, covering 127 commodities. What attracts the most attention from the market is the decline in the tax burden on complete vehicles: for "fully imported passenger cars"(including four-wheel drive vehicles, station wagons, etc.), the import tariff rate has been reduced from 70% under the 2015 policy to 40%. In terms of food and industrial products, the tariff on bulk rice has been reduced from 70% to 47.5%, and the tax rate on broken rice has been set at 30%. The comprehensive tax burden on raw palm oil has been adjusted to 28.75%; and the tariff range for raw sugar has been reduced to 55%-57.5%. In addition, the refined salt tax rate has been adjusted to 55%, and the tax rate for industrial and building materials such as ceramic bricks and steel has also been lowered. The tax rate for some steel products has been set at 35%, and the tax rate for low-carbon cold rolled steel is 15%.

In order to promote industrial growth, the Nigerian government also implements "zero-tariff" import arrangements for agricultural and industrial machinery, freight ships, railway locomotives and some industrial equipment. The circular also provides a transition period: Importers who have started transactions before April 1 will be given a 90-day grace period to complete customs clearance at the old tax rate.

However, the Nigerian government has also simultaneously released the other side of the "tax increase": the new consumption tax system and the "Green Surcharge" will be implemented on July 1, 2026. The circular stated thatvehicles with a displacement of less than 2000cc, public transport buses, electric vehicles, and locally produced auto parts will be exempted, and the policy guidance points to cleaner transportation and local manufacturing.

written in the end

Nigeria is one of the largest used car consumer markets in West Africa. The reduction of vehicle tariffs from 70% to 40%, which will directly stimulate terminal prices and customs clearance expectations. However, the "green surcharge" and the new consumption tax system since July mean that the cost side is not down in one direction. More realistic opportunities may arise in terms of structure: models below 2000cc, electric vehicles, and businesses related to local parts and components are expected to enjoy clearer policy dividends; while large-displacement models may be hedged by subsequent surcharges even if tariffs fall. For exporters, the next step should be to focus on tracking the implementation of Nigeria's detailed rules on "applicable caliber for used cars, duty-paid price verification, and green surcharge calculation methods", and adjust the model combination and quotation model in advance.

Source link:https://thenationonlineng.net/fg-cuts-import-duties-on-cars-rice-others-in-2026-policy/

Source: Guangdong Good Car

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