The Federal Government has announced that a new excise duty framework and green tax regime will take effect from July 1 as part of sweeping fiscal reforms aimed at boosting economic activity and supporting sustainable growth.
The policy, contained in the 2026 Fiscal Policy Measures (FPM) circular signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, also introduces significant reductions in import duties across 127 tariff lines.
According to the government, the revised tariff structure replaces the 2023 framework and is designed to lower import costs in key sectors while stimulating industrial development and trade.
Under the new regime, import duty on fully built passenger vehicles, including four-wheel drives, has been reduced to 40 percent from 70 percent. Rice imports will now attract 47.5 percent duty, down from 70 percent, while broken rice is pegged at 30 percent. Duties on crude palm oil have been cut to 28.75 percent from 35 percent.
The government also reduced tariffs on a range of industrial and consumer goods, including steel products, ceramics, and stationery items. Electrical equipment such as fuses will now attract 10 percent duty, compared to the previous 20 percent.
In a move to support infrastructure and industrialisation, zero per cent import duty has been approved for selected items such as railway locomotives in SKD/CKD form, cargo vessels above 500 tonnes, agricultural and manufacturing machinery, and safety equipment.
To cushion the transition, authorities granted a 90-day grace period for importers who opened Form ‘M’ before April 1.
However, the government said the new excise and green tax framework will be implemented from July, targeting environmental sustainability and revenue mobilisation. Exemptions have been provided for vehicles below 2000cc, electric vehicles, and mass transit buses.
Officials said the combined reforms are expected to ease cost pressures, encourage cleaner technologies, and strengthen Nigeria’s fiscal position while promoting long-term economic growth.
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