The federal government has announced a reduction in import tariffs on key goods, including food items, vehicles and industrial machinery.
This is in a bid to ease inflationary pressures and cushion rising living costs across the country.
The policy shift, confirmed on Tuesday by the presidency, will take effect from 1 July and comes amid growing economic strain linked to global geopolitical tensions.
According to the administration of President Bola Ahmed Tinubu, the revised tariff regime forms part of a “broader fiscal effort to curb inflation, lower household costs, and reduce input prices for businesses.”
The decision follows warnings from the World Bank that inflation, which had eased to 15.06 per cent in February, is now “facing renewed pressure since the start of the Iran war,” further complicating Nigeria’s economic outlook.
Under the new structure, import duties on passenger vehicles will be reduced sharply to 40 per cent from 70 per cent. Bulk rice will now attract a 47.5 per cent duty, while levies on raw sugar cane will fall to between 55 per cent and 57.5 per cent. Palm oil duties will also be cut to 28.75 per cent.
The government also introduced full exemptions for electric vehicles, mass-transit buses, and manufacturing machinery as part of efforts to stimulate industrial growth and promote cleaner transport systems.
Wale Edun, finance minister said the geopolitical crisis has had a direct impact on domestic prices, noting that fuel costs have surged significantly since the conflict began.
He stated: “Since the conflict began, petrol prices have jumped more than 50 per cent to about 1,330 naira a litre, while diesel is up over 70 per cent at around 1,550 naira,” adding that the spike is “squeezing transport, manufacturing and small businesses.”
The administration is expected to seek financial support at the upcoming spring meetings of the International Monetary Fund and the World Bank as it attempts to stabilise public finances amid rising external shocks.