The Federal Government has approved a wide-ranging set of tariff cuts on rice, palm oil, sugar and other goods under the 2026 Fiscal Policy Measures, in a circular signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun. The policy replaces the 2023 fiscal guidelines and took effect from April 1, 2026, according to The Nation.
At the centre of the reform is a revised national tariff schedule covering 127 items, many of them food staples. Bulk rice now attracts a duty of 47.5 per cent, down from 70 per cent, while broken rice has been reduced to 30 per cent, as Legit.ng reported. Crude palm oil imports are now pegged at an effective rate of 28.75 per cent, lowered from 35 per cent, while raw sugar tariffs range between 55 and 57.5 per cent, also below previous levels, according to The Guardian.
A Grace Period and a Long Phase-Out
The framework includes a 90-day grace period for importers who already held approved Form M documents and concluded agreements before April 1, allowing them to clear shipments under the old structure, Legit.ng noted. Edun said the accompanying Import Adjustment Tax would not be permanent, stating that from January 2027 all such taxes, except for products on the African Continental Free Trade Area list, would be reduced annually until full elimination to zero per cent by 2036, in line with Nigeria's trade commitments, according to The Nation.
Relief for Consumers, Caution From Producers
The Federal Government has framed the cuts as a move to ease inflationary pressure and lower the cost of living, with reductions extended across 127 tariff lines, as Legit.ng reported. Not everyone is convinced the relief is unambiguous. Economists and industry stakeholders told Daily Trust that cheaper imports could weaken local production if domestic farmers and millers are left exposed, and they pressed for complementary policies to protect home-grown supply.
Whether a lower tariff at the port becomes a lower price at the market stall depends on how traders respond. FoodPrices Nigeria tracks verified rice and palm oil prices across Lagos markets, where the real test of this policy will play out over the coming months.