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FG cuts import duties on cars, rice, others in 2026 policy

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The Federal Government of Nigeria has approved a wide-ranging set of fiscal policy measures for 2026, cutting import duties on key goods such as vehicles, rice, palm oil and sugar, while introducing new taxes and protections aimed at supporting local industries and economic growth.

The new policy, contained in a circular signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, replaces the 2023 fiscal guidelines and takes immediate effect from April 1, 2026.

According to the document, 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.”

At the centre of the reform is a revised national tariff schedule covering 127 items, many of which now attract lower import duties. One of the most notable changes is the reduction in tariffs on fully built passenger vehicles, including four-wheel drives and station wagons, which have been cut to 40 per cent from the previous 70 per cent rate.

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Food imports also saw significant adjustments. Bulk rice now attracts a duty of 47.5 per cent, down from 70 per cent, while broken rice has been reduced to 30 per cent. Crude palm oil imports are now pegged at an effective rate of 28.75 per cent, while raw sugar tariffs range between 55 and 57.5 per cent, also lower than previous levels. Refined salt for human consumption has been adjusted to 55 per cent.

The government also reduced duties on several industrial and household items. Envelopes now attract 40 per cent duty, down from 50 per cent, while notebooks are set at 30 per cent. Ceramic tiles have also been adjusted, with unglazed tiles at 35 per cent and glazed tiles at 46.25 per cent.

In the steel sector, key materials such as zinc-coated sheets, steel coils and rods now attract about 35 per cent duty, reduced from earlier rates of up to 45 per cent. Cold-rolled steel with low carbon content is set at a lower rate of 15 per cent.

Other reductions affect electrical and construction-related equipment. Automatic circuit breakers now attract 10 per cent duty, down from 20 per cent, while modular surgical operating theatres have been reduced sharply to 5 per cent from 20 per cent. Air compressors and similar equipment are now set at 5 per cent.

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In a move aimed at boosting industrialisation, the government approved zero import duty on a number of critical assets. These include agricultural and manufacturing machinery, railway and tramway locomotives, cargo ships above 500 tonnes, as well as breathing equipment such as gas masks.

The policy also introduces Supplementary Protection Measures, including an Import Adjustment Tax on 192 tariff lines and an import prohibition list covering 17 items from countries outside the ECOWAS region. Items on the prohibition list include certain agricultural products and hazardous materials.

Edun said the Import Adjustment Tax would not be permanent, noting that “with effect from January 2027, all Import Adjustment Taxes, except for products on the African Continental Free Trade Area 3 per cent list, shall be gradually reduced on an annual basis until full elimination to zero per cent by 2036, in line with Nigeria’s commitments.”

As part of the changes, new excise duties will apply to non-alcoholic and alcoholic beverages, cigarettes and tobacco products. A green tax surcharge will also be introduced, both taking effect from July 1, 2026.

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However, the government provided exemptions under the green tax policy. Vehicles with engine capacity below 2000cc, mass transit buses, electric vehicles and locally manufactured auto components will not be subject to the surcharge, a move seen as encouraging cleaner transportation and local production.

To ease the transition, the government granted a 90-day grace period for importers who had initiated transactions before April 1, 2026. Such importers will be allowed to clear their goods under the old duty rates, provided they have existing Form ‘M’ and irrevocable trade agreements.

“A grace period of ninety days commencing from the date of this circular is hereby granted to all importers, manufacturers, and service providers,” the minister said, adding that the new excise duty rates would begin from July, while subsequent rates for 2027 and 2028 would take effect from January of each year.

The measures also include environmental controls, with waste polyethylene terephthalate added to the export prohibition list.

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Edun said the full details of the fiscal policy measures would be published in the official government gazette and urged stakeholders to comply with the new framework.

“These Fiscal Policy Measures, which supersede the 2023 Fiscal Policy Measures, shall be published in the Official Federal Government Gazette,” he said.

The new policy signals a shift in Nigeria’s trade and fiscal strategy, combining lower tariffs on key imports with targeted protections and incentives aimed at strengthening domestic industries while meeting regional and continental trade commitments.

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Judges’ Welfare Key to Judicial Independence, Says FCT Chief Judge

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The Chief Judge of the Federal Capital Territory (FCT) High Court, Justice Husseini Baba-Yusuf, has described the welfare of judicial officers as an institutional necessity rather than a privilege, saying improved living and working conditions are essential for an independent and effective judiciary.

He spoke on Wednesday at the presidential commissioning of the newly completed 20-unit Judges’ Quarters in Abuja, where he said the project represents a strategic investment in the administration of justice and the strengthening of democratic institutions.

Justice Baba-Yusuf noted that the housing project, which was flagged off less than two years ago, was completed within record time, describing it as a demonstration of purposeful leadership and commitment to judicial reforms.

“What started as a vision, nurtured and driven by the relentless dedication of the Honourable Minister of the Federal Capital Territory, has finally unfolded into something extraordinary,” he said.

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According to him, the commissioning goes beyond the unveiling of residential buildings, as it reflects deliberate efforts to preserve the dignity of judicial office and reduce the anxieties associated with poor living conditions and post-service welfare.

“The welfare of judicial officers is not a privilege. It is an institutional necessity that promotes stability, enhances productivity, safeguards personal security and preserves the dignity that must accompany judicial office,” he stated.

The Chief Judge said a strong judiciary remains central to democratic governance, noting that judges can only discharge their constitutional responsibilities with courage, independence and impartiality when provided with adequate institutional support.

He stressed that judicial independence cannot be guaranteed solely through constitutional provisions but must also be reinforced through quality infrastructure, proper welfare arrangements and conducive working conditions.

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“The provision of these quarters is a significant contribution to judicial independence. Judicial officers require adequate infrastructure and dignified welfare arrangements to perform their adjudicative responsibilities efficiently, courageously and with complete fidelity to the rule of law,” he added.

Justice Baba-Yusuf expressed appreciation to President Bola Ahmed Tinubu for supporting the project, saying the initiative demonstrates the Federal Government’s commitment to justice sector reforms and institutional strengthening.

He also commended the Minister of the Federal Capital Territory, Nyesom Wike, for conceiving and delivering the project, describing it as a landmark intervention in the nation’s judicial infrastructure.

On behalf of judges and staff of the FCT Judiciary, he pledged continued commitment to upholding the Constitution and dispensing justice without fear or favour.

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The Chief Judge, however, appealed to the FCT Minister to extend similar housing projects to the FCT Sharia Court of Appeal and the Customary Court of Appeal, noting that both institutions are integral components of the FCT judiciary.

He observed that similar projects had already been inaugurated for the National Industrial Court and the Code of Conduct Tribunal, while housing initiatives had also benefited the Court of Appeal, Federal High Court, Body of Benchers and the Nigerian Law School.

Justice Baba-Yusuf said the commissioning comes at a time when the FCT High Court is facing increasing responsibilities as Abuja continues to expand as Nigeria’s political, administrative and commercial hub.

He assured residents of the Federal Capital Territory that the judiciary would remain steadfast in protecting the rule of law and delivering justice fairly and impartially despite the growing demands on the courts.

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Oyo kidnappings : Senate donates N50m to families of slain teachers, soldiers

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The Nigerian Senate has approved a donation of N50 million to the families of five individuals who lost their lives in the abduction of pupils and teachers from schools in the Oriire local government area of Oyo State.

Senate President Godswill Akpabio announced the donation during plenary on Wednesday, describing their deaths as a painful sacrifice in the nation’s fight against insecurity.

Akpabio lauded the Nigerian Armed Forces and other security agencies for the successful rescue of the abducted victims after nearly two months in captivity.

According to him, N10 million would be given to each of the families of the two teachers murdered by the abductors and the three soldiers who died during the rescue operation.

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Akpabio stated that the gesture was aimed at providing some support to the bereaved families and recognising the sacrifices made by the deceased in the course of the tragic incident.

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Reps demand Full List of N34tn Customs Waivers, Probe Revenue Discrepancies

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…as committee orders CAC to explain ₦13.9bn operating surplus debt

By Gloria Ikibah

The House of Representatives has directed the Nigeria Customs Service (NCS) to submit a detailed account of the nearly ₦34 trillion worth of import duty waivers granted in 2025, demanding the identities of beneficiaries, the legal basis for the concessions and the specific purposes for which they were approved.

The directive was issued on Tuesday during an oversight session of the House Committee on Finance with the management of the Nigeria Customs Service as part of the National Assembly’s ongoing review of revenue-generating agencies.

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Chairman of the committee, Rep. James Faleke, said the lawmakers were not opposed to the government’s waiver policy but had a constitutional duty to ensure that such concessions were transparent and served the country’s economic interests.

According to him, the committee wants clarity on who benefited from the waivers and whether the incentives achieved their intended objectives.

Faleke said: “Waiver is good. It is not a bad thing to grant waiver. But we want to know those who benefited from the waiver and the purpose for such waiver. It is okay if you grant waiver on medical and agricultural products.

“If you grant waiver, it is aimed at helping the economy to grow. For example, if you grant waiver on agricultural products, it is aimed at reducing the cost of food. So, we are not against waiver. But we want to know the beneficiaries of this ₦34 trillion waiver”.

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The committee also questioned Customs over what lawmakers described as inconsistencies in its revenue reports, despite the agency consistently surpassing its collection targets.

Faleke observed that while the Service recorded impressive revenue performance, the financial records submitted did not sufficiently explain how the additional revenue above approved targets was realised.

“We are not going to applaud your efforts now because your account books are not balanced. We know that you want to be transparent, but you have not told us how the excess money you are reporting came about.

“I can see that in some months, you under-declare your revenue collection and in other months, you overshoot the collection. We want to know what is responsible for this. You have to provide these little details that will help us properly assess your performance”, he stated.

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Deputy Chairman of the committee, Rep. Saidu Abdullahi, argued that the Federal Government should consider raising revenue targets for agencies such as the Nigeria Customs Service, noting that the Service had repeatedly exceeded expectations.

“I personally believe that they can do more than the target we give to them.

“I think we are not pushing them enough. That is why they will always come up with excesses. In 2024, you were given a target of ₦5 trillion and you generated N6.1 trillion. In 2025, you were given a target of about ₦6 trillion and you generated N7.2 trillion. I believe that if we push you enough, you can do better”, he said.

Responding on behalf of the Comptroller-General of Customs, Bashir Adeniyi, the Deputy Comptroller-General in charge of Finance, Administration and Technical Services, Kikelomo Adeola, clarified that the Nigeria Customs Service does not approve import duty waivers.

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She explained that the Service only implements approvals granted by the Federal Ministry of Finance in line with existing laws and government policy.

Adeola also advocated greater investment in inland dry ports across the country, saying the facilities would ease congestion at seaports and speed up cargo clearance.

“I will encourage all state governments to invest in inland dry ports. That will have a lot of impact on our operations. Any cargo that is marked for such inland port will not be delayed at the main port.

“The container will be transported directly to the inland port where it will be examined. That will reduce the pressure at the nation’s ports and increase trade facilitation in the states”, she said.

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She further assured lawmakers that Customs’ scanning equipment was largely operational, with only a few units currently undergoing repairs.

However, committee member Rep. Ifeanyi Uzokwe urged the Service to hold officers accountable whenever negligence leads to equipment failure or unnecessary delays in cargo clearance.

The committee also scrutinised the Corporate Affairs Commission (CAC), directing the agency to submit comprehensive records of all registered companies and businesses in Nigeria, including the fees paid during registration.

Lawmakers further queried the commission for failing to submit its audited financial statements to the Fiscal Responsibility Commission (FRC) since 2019, contrary to statutory requirements.

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The committee ordered the CAC to reconcile its records with the Fiscal Responsibility Commission without delay.

A representative of the Fiscal Responsibility Commission told lawmakers that the Corporate Affairs Commission owed the Federal Government N13.9 billion in unremitted operating surplus accumulated over several years.

Responding, the Registrar-General of the Corporate Affairs Commission disclosed that the agency had already begun reconciling its accounts with the Fiscal Responsibility Commission and had agreed to settle the outstanding liability through quarterly payments of N500 million.

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