The Federal Government announced a wide-ranging overhaul of Nigeria's import tariff structure in April 2026, cutting duties on food commodities including rice, palm oil, and sugar as part of a broader effort to contain food inflation that has been re-accelerating through the first quarter of the year.
What Has Changed
The policy also introduced reductions on essential food imports. Bulk rice tariffs dropped to 47.5 percent from 70 percent, while broken rice is now set at 30 percent. Levies on palm oil will be cut to 28.75% from 35%, while raw sugar cane duties have been reduced to between 55% and 57.5% from 70%. Daily TrustCNBC Africa
The new policy, contained in a circular signed by Finance and Coordinating Minister of the Economy Wale Edun, replaces the 2023 fiscal guidelines and took immediate effect from April 1, 2026. The measures are part of Nigeria's alignment with the ECOWAS Common External Tariff and are designed to promote and stimulate growth in critical sectors of the economy. The Nation
The revised national tariff schedule covers 127 items in total. A new excise duty regime and green tax surcharge are scheduled to take effect from July 1, 2026.
The Inflation Context
The policy arrived as Nairametrics reported that food inflation crossed above Nigeria's headline rate for the first time since August 2025 in April 2026, reaching 16.06% year-on-year. With the FAO Food Price Index recording its third consecutive monthly increase in April, the government faces pressure on two fronts: global commodity prices pushing costs up and weakening domestic production unable to absorb the shock.
The Risk: Undercutting Local Farmers
The cut has not been universally welcomed. Nigerian rice farmers have historically relied on high tariffs to shield them from cheaper imports. Economists described the policy as a deliberate balancing act aimed at addressing short-term economic pressures while positioning the economy for long-term growth. For rice farmers in Kebbi, Anambra, and Ebonyi who have invested in production under tariff protection, a 22.5 percentage point cut in the bulk rice tariff changes the economics of their operations substantially. Daily Trust
Gradual Path to Liberalisation
The Import Adjustment Tax will not be permanent, with the government announcing that from January 2027, all Import Adjustment Taxes except for products on the African Continental Free Trade Area 3% list shall be gradually reduced on an annual basis until full elimination to zero percent by 2036, in line with Nigeria's AfCFTA commitments. The Nation
FoodPrices Nigeria monitors palm oil, rice, and other traded food commodities across Lagos markets. Whether the tariff cuts translate into lower retail prices at Oshodi, Ajah, and Lekki-Jakande Markets is the question the data will answer.