₦airaland Forum

If you've been following the news, you have probably heard that the Federal Government has rolled out the new 2026 Fiscal Policy Measures (FPM). While the headlines focus on cars and rice, there is actually a lot more in this policy that affects everything from the sugar in your tea to the tiles on your floor. Let's take a proper look at what has actually changed, what the old rates were, and what this means for the average Nigerian.

What Changed for Cars (Fully Built Units)

For years, Nigerians have groaned under the weight of the 70% total tariff on imported vehicles. Under the old 2015-2023 framework, this was made up of a 35% import duty and a 35% NAC levy.
Here is the good news: The total effective tariff on fully built passenger vehicles (including SUVs and station wagons) has been slashed from 70% down to 40%. However, it is crucial to note that this 40% is the "Import Duty" line item. When you go to clear the car at the port, you will still pay the following additional charges on top:

1. NAC Levy: 15% (for used vehicles)

2. Surcharge: 7% of the duty

3. CISS: 1% of FOB value

4. ETLS: 0.5% of CIF value

5. VAT: 7.5% on the total sum

Exemptions: The government is pushing for cleaner energy, so vehicles with engines below 2000cc, electric vehicles, and mass transit buses are exempt from some of the new taxes coming later.

What Changed for Rice

This is arguably the most sensitive item on the list. The previous duty on bulk rice was a staggering 70%. Under the new 2026 policy:

Bulk Rice (>5kg): Reduced from 70% to 47.5%

Broken Rice: Reduced from 70% to 30%

The Controversy: While this is supposed to make rice cheaper for consumers, the Rice Farmers Association of Nigeria (RIFAN) is not smiling. They argue that flooding the market with cheaper foreign rice will kill local production just when Nigeria was approaching self-sufficiency. Expect a lot of policy back-and-forth on this one.

Other Major Items the FG Slashed

Beyond cars and rice, the policy includes a national list of 127 items with reduced duties. Here are some of the most notable changes that affect everyday household and business costs:

Product Category Old Duty (%) New Duty (%)
Crude Palm Oil 35 28.75
Raw Sugar 70 55 – 57.5
Refined Sugar 70 57.5
Refined Salt 70 55
Antimalarial Drugs High (varies) 20
Ceramic Tiles 55 46.25
Zinc-coated Steel 45 35
Cold-rolled
Steel Higher 15 10
Notebooks/Diaries 40 30
Electrical Fuses 20 10


The New "Green Tax" and Excise Duties

Before we celebrate too much, there is a second phase to this policy kicking in from July 1, 2026. The FG is introducing a new Excise Duty regime and a Green Tax Surcharge. This means that while the base import duty is lower, the government will add new charges to non-eco-friendly goods and certain beverages/tobacco products to make up for lost revenue.

Key Dates to Remember:

Effective Date: April 1, 2026.

Grace Period: 90 days for those who opened Form M before April 1 (they can clear at the old rates).

New Taxes Start: July 1, 2026

Conclusion

The 2026 Fiscal Policy is a classic "give and take." It reduces the cost of essential imports like food and medicine, which should help cool inflation. But it also introduces new green taxes and excise duties that will kick in by July. The big question remains: Will traders and importers pass the full savings on to the consumer, or will they pocket the difference?

What are your thoughts on the new tariff cuts? Will you be rushing to the port to clear that car now, or are you waiting to see how the market reacts? Let's hear your views below

Nice one, I hope this is not for election alone

SadiqBabaSani:
Nice one, I hope this is not for election alone

What did you understand that you are shouting "Niice one"? Point out what you noted on this write up.

Take Tinubu for granted at your own extreme risk. Person wey dey plan for 20years ahead

Validated:
What did you understand that you are shouting "Niice one"? Point out what you noted on this write up.

Their crys don reach Aso Rock from Nairaland

He had to include RICE to protect his dying supporters

Yeah right...

He planned for your ancestors sef..

alizma:
Take Tinubu for granted at your own extreme risk. Person wey dey plan for 20years ahead

esnbrutality:
Their crys don reach Aso Rock from Nairaland

He had to include RICE to protect his dying supporters

Stop shouting, the president is following the trend. He needs to study while making decisions. When doors was shut to rice importation, our local farmers made sure rice wasn’t affordable for common men, everyone groan and the president opened the door for importation, now rice is cheaper, with reduced tariff, it will get cheaper innit? So the president is following what’s going on with the populace we can say. That makes him a listening president.