FG Slashes Import Duties on Rice, EVs, Machines

By Adedapo Adesanya

The Nigerian government has slashed import duties on a range of products from food to mass transit buses, electric vehicles, and manufacturing machinery.

The development followed President Bola Tinubu’s directive to key economic officials to design measures to cushion the impact of the ongoing Middle East crisis on Nigerians, particularly amid rising fuel prices.

In a disclosure on X on Monday by the Special Assistant to the President on Social Media, Mr Dada Olusegun, it was said that the move was part of new fiscal measures aimed at easing economic pressure on Nigerians and curbing inflationary pressures.

Mr Olusegun said the Tinubu-led administration approved a broad set of import duty reductions to lower inflation, support businesses, and improve affordability for consumers.

“President Tinubu’s administration has approved a massive reduction in import duties of selected products in order to further reduce inflation, empower local businesses and increase affordability for consumers,” he said.

The Israel–US–Iran conflict, ongoing since February 28, 2026, has severely disrupted global oil flows, particularly around the Strait of Hormuz, which handles about 20 per cent of global crude supply.

Under the new policy, import duties on electric vehicles were reduced from 5 per cent to 0 per cent. Mass transit buses were also granted full duty exemption, down from 5 per cent to 0 per cent, to encourage cheaper public transportation and support cleaner mobility alternatives.

The levy on manufacturing machinery was equally scrapped, falling from 5 per cent to 0 per cent, in a move aimed at lowering production costs and boosting industrial activity.

Raw cane sugar was adjusted from 70 per cent to between 55 per cent and 57.5 per cent, while crude palm oil duties were reduced from 35 per cent to 28.75 per cent.

The policy also introduced broader tariff adjustments across key import segments – passenger vehicle duties were reduced from 70 per cent to 40 per cent, while tariffs on bulk rice were cut from 70 per cent to 47.5 per cent and broken rice from 70 per cent to 30 per cent.

In the industrial and construction sector, steel sheets and coils were lowered from 45 per cent to 35 per cent, while glazed ceramic tiles were reduced from 55 per cent to 46.25 per cent, in a move aimed at easing production and construction costs.

A 90-day transition phase beginning April 1, described as a “Transition Phase”, to allow markets to adjust gradually and avoid sudden shocks, has also been introduced.