FG rolls out new tax tariffs

By Fredrick Ameh

The Federal Government of Nigeria has unveiled sweeping fiscal reforms for 2026, introducing new tariffs, excise duties, and trade regulations aimed at boosting economic stability and aligning with regional trade frameworks.

Announced by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the measures took effect from April 1, 2026. the core of the policy is the adoption of the ECOWAS Common External Tariff (CET) 2022–2027, alongside new excise duties on non-alcoholic and alcoholic beverages, cigarettes, and tobacco products.

The reforms also introduce a Green Tax Surcharge as part of efforts to promote environmental sustainability. A major feature is the Import Adjustment Tax (IAT), now applied to 192 tariff lines, while 17 items have been placed on an import prohibition list targeting goods from non-ECOWAS countries.

To stimulate economic growth, the government approved reduced import duties on 127 items critical to key sectors. Notably, tariffs on crude palm oil have been adjusted to 28.75 percent, while duties on fully built passenger vehicles have been cut significantly from 70 percent to 40 percent.

The policy also outlines a phased transition plan, with most Import Adjustment Taxes scheduled for gradual reduction starting in 2027 and complete elimination by 2036, in line with commitments under the African Continental Free Trade Area.

In addition, Waste Polyethylene Terephthalate (rPET) has been added to the export prohibition list, reinforcing environmental and recycling regulations.

Stakeholders including importers, manufacturers, and service providers have been granted a 90-day grace period to adjust to the new excise regime, which will take effect from July 1, 2026. Subsequent duty rates for 2027 and 2028 are scheduled to commence on January 1 of each year.

Authorities clarified that import transactions initiated before April 1, 2026, will temporarily retain the previous duty structure, as the new measures move toward full enforcement following formal publication in the government gazette.