Nigeria : Federal Government slashes import tariffs on palm oil by 17%
The government has cut import tariffs on crude palm oil and key food items under its 2026 fiscal policy to ease inflation and boost economic growth. Lower duties on rice, sugar, and salt aim to reduce costs, improve supply, and align trade policies, offering relief to consumers and supporting market stability.
The Federal Government has reduced import tariffs on crude palm oil to 28.75 per cent from 35 per cent, a 17 per cent decrease, under the new Fiscal Policy Measures (FPM)
Import tariffs on key food items such as raw cane sugar, bulk rice and refined salt for human consumption, among others, have also been reduced.
The changes form part of the approved 2026 FPM, outlined in a circular dated 1 April 2026 and signed by Wale Edun, Minister of Finance and Coordinating Minister of the Economy.
The document, which supersedes the 2023 FPM, introduces a national list of 127 tariff lines with reduced import duty rates designed to “promote and stimulate growth in critical sectors of the economy”, the report stated.
According to the document, the import adjustment tax (IAT) on items such as crude palm oil has been revised downward as part of a broader effort to align with the ECOWAS Common External Tariff framework.
Beyond palm oil, several staple food imports saw notable tariff reductions. For instance, bulk rice (in quantities above 5 kg) now attracts a 47.5 per cent duty, down from 70 per cent, while broken rice has been reduced to 30 per cent from 70 per cent.
Wheat or meslin flour remains at 70 per cent, margarine (excluding liquid) at 40 per cent, and refined salt for human consumption at 55 per cent.
Meanwhile, raw cane sugar (beet sugar) now stands at 57.5 per cent, raw cane sugar (other) at 55 per cent, and cane or beet sugar in powdered or granulated form at 57.5 per cent, all reduced from the previous 70 per cent levels.
The government also granted a 90-day grace period for importers who opened Form ‘M’ before 1 April to clear goods at the old rates, while signalling new excise duties and a green tax surcharge effective from 1 July 2026.
Experts note that this move will go a long way in easing inflationary pressures, stimulating economic growth and relieving Nigerians of harsh economic conditions.
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Source : Business Day
