On April 1st, 2026, The Minister of Finance and Coordinating Economy signed a circular confirming the approval of the implementation of the 2026 Fiscal Policy Measures and Tariffs Amendment. These measures were made pursuant to the Supplementary Protection Measures (SPM) to implement the Economic Community of West African States (ECOWAS) Common External Tariffs (CET) 2022 – 2027 and in alignment with the African Continental Free Trade Area (ACFTA) Agreement.
The measures serve as a review of Nigeria’s import tariff and excise duty structure since its prior review in 2023 and aims at governing and resetting Nigeria’s customs and excise tariffs and duties. It takes effect from 1st April, 2026 and significantly affects Import trading in Nigeria.
PRINCIPAL COMPONENTS OF THE 2026 FISCAL POLICY MEASURES AND TARIFFS AMENDMENT
The policy measures incorporate the Supplementary Protection Measures (SPM) based on the ECOWAS Common External Tariffs (CET), which binds member nations to a common tariff structure. The following items of the SPM ECOWAS CET were implemented under the policy measures:
- Import Adjustment Tax (IAT) List: This pushes additional levies on select items. The IAT increases the duties on specific items in order to protect the local and domestic production of these items. This protection is temporary as from January, 2027 all IAT’s except items on the African Continental Free Trade Area (AFCTA) 3 percent list, shall be gradually reduced annually until its complete reduction to 0% by 2036. This exemption may be applied in Nigeria as a result of Nigeria’s commitments with ECOWAS and the AFCTA.
The IAT list as listed under Annex 1, contains 192 items, example of which are; Rice packed in above or below 5 Kilograms (Kg) possess a revised duty of 47.5%, Refined and raw sugars stand at 55 and 57%, cement and cement clinkers fall at 50% etc. The import of Medications such as certain antibiotics, antimalaria, alkaline based products and other medications containing vitamins carry a duty of 20%. Optical fibre cables are rated at 40% and Passenger vehicles under the Harmonized system (HS) code heading 8703 including four-wheel drive motor vehicles stand at a reduced rate of 40% from the past 70%.
- An Import Prohibition List (Trade): This bans certain goods originating from non-ECOWAS member states and contains 17 product categories. The categories cover live and dead birds, frozen poultry, pork and beef, refined vegetable oils excluding crude vegetable oil, cane and beet sugar in retail packs, cocoa butter, cocoa powder, tomatoes and tomato paste in retail sale, sugar sweetened and flavoured waters and other non-alcoholic beverages, bagged cement, waste pharmaceuticals, soaps and detergents in retail packs, corrugated paper, boards and cartons; corrugated flat rolled steel; and ball point pens and refills etc.
The policy measures also include waste polyethylene Terephthalate (rPET), which is gotten from use plastic containers, to the import prohibition list under schedule 6 of the ECOWAS Common External Tariffs (CET). This addition allows for plastic waste utilized within the country to be domestically recycled rather than exported. This means that importers may import the items in this prohibited list only from ECOWAS states and are prohibited from importing any of such prohibited items from non – ECOWAS states.
- The National List – Relief for Inputs and Capital Goods: This list reduces duty on priority items while the IAT raises the duty. It makes import duty on specific items cheaper, which in turn makes it cheaper to bring those goods into Nigeria. These goods are contained in Annexure II of the circular with 127 items. They include; industrial raw materials, equipment and chemicals, completely – knocked – down components for local assembly, medical gloves and medical paper, etc.
Together with the IAT list, it presents a system where the import of finished goods has higher import duties, while import of raw materials possess reduced import duties. This is important for Manufacturers as this signifies that import costs would reduce.
- Approved Excise Duty Rates: The policy measures also contain approved Excise Duty rates in Annexure IV. These excise duty rates take effect from the 1st of July, 2026 as a result of the ninety (90) day grace period given from the date of the circular (i.e., 1st April, 2026) and the 2027 and 2028 rates commencing on the 1st of January of each respective year. Examples of these categories and the corresponding rates include: Nonalcoholic, sugar – sweetened beverages, fruit juice, energy drinks and aerated waters are rated at N10 per litre, Beer and Stout are rated at N72 with a gradual increment (escalating rate) in 2027 and 2028, and Alcoholic wines are placed at an advalorem rate of 25% and a specific rate of N70 etc.
- The Green Tax Surcharge: This is an excise measure on motor vehicles. It is contained in Annexure V of the circular and comes into effect on July 1st, 2026. It is aimed at protecting the environment from vehicular emissions and pushes buyers toward smaller engine vehicles, electric vehicles and locally assembled units. This fits in with the reduced 40% import duty on passenger cars under the IAT list.
It is charged on engine – size based with 2% charge on vehicles from 2000cc to 3999cc and 4% charge on vehicles of 4000cc and above. Vehicles below 2000cc, mass transit buses, electric vehicles, and locally manufactured vehicles are excluded from this surcharge.
HOW IT DIFFERS FROM THE 2023 POLICY MEASURES
The 2026 policy measures supersedes the 2023 policy measures which were issued on 20th April, 2026. Although the 2023 policy measures take the same form as the current measures, with an Import Adjustment Tax List, an import prohibition list and a National List for reduced rates on priority items. The IAT list as contained in the repealed policy measures contain 189 items in contrast with the 192 items contained in the current list.
A large part of the measures contained in the 2023 list were halted by four (4) executive orders in July 2023. This led to the suspension of measures such as the 10% excise on single use plastics, the import adjustment duties on higher capacity vehicles, the 5% excise on telecommunication services and the gradual increase on excise duties for locally manufactured goods and the relevant commencement dates were deferred. It is important to note that the suspended vehicle levies are reintroduced in the current policy measures in the form as an excise duty – Green Tax Surcharge, an opposed to an import adjustment levy as in the 2023 policy measures.
The 2026 policy measures further states the trajectory of its implementation by stating a three year escalation plan for alcohol and tobacco items and completely phasing out the import adjustment levies by 2036. This was absent in the 2023 policy measures. Thus, the 2026 policy measures holds a slight improvement from the 2023 policy measures.
KEY TAKEAWAYS FOR BUSINESSES
The Implementation of the 2026 Fiscal Policy Measures and Tariffs Amendment had the following effects on businesses:
- Cross boarder trade contracts signed before the effective dates but shall continue past the effective dates are to be evaluated to ensure that they conform with the current changes and rate adjustments.
- Manufacturers are to take into consideration the stated current changes in duties and those projected for 2027 and 2028 including the gradual phase out to 0% by 2036, in its pricing and cost systems.
- Increase in compliance obligations such as custom documentation. An example of such requirement is the confirmation of the origin or source of the items being imported as the items listed in the prohibition list are only barred if imported from non -ECOWAS member states. Thus, the same items may be imported as long as they originate from ECOWAS member states.
- The prices of imported items shall experience price adjustments due to the revised duties. For example, items such as vehicles, inputs and machinery required to boost local production shall experience a pricing reduction.
In conclusion, the policy measures are a direct change in Nigeria’s trade and customs system.
OGUAMA OGECHUKWU IJEOMA
ASSOCIATE
