Federal Government Cuts Palm Oil Import Tariffs by 17% to Ease Food Prices

The Federal Government of Nigeria has reduced import tariffs on crude palm oil by 17 per cent, a move aimed at easing food prices and supporting economic stability. Under the newly approved Fiscal Policy Measures (FPM) for 2026, the tariff dropped from 35 per cent to 28.75 per cent, signaling a shift toward more flexible trade policies in response to rising living costs.

The policy adjustment extends beyond palm oil, with import duties on key food items such as bulk rice, raw cane sugar, and refined salt also significantly reduced. Government officials say the broader tariff cuts are designed to make essential goods more affordable for Nigerians, many of whom have been grappling with persistent inflation and high food prices.

Details of the new measures were outlined in a circular dated April 1, 2026, and signed by Wale Edun, Minister of Finance and Coordinating Minister of the Economy. The document replaces the 2023 Fiscal Policy Measures and introduces a revised national tariff structure covering 127 product lines, targeting sectors considered critical to economic growth.

According to the government, the revised tariffs also align Nigeria’s trade framework with the ECOWAS Common External Tariff. As part of the changes, the import adjustment tax on commodities like crude palm oil has been lowered, while tariffs on bulk rice have dropped sharply from 70 per cent to 47.5 per cent. Broken rice now attracts 30 per cent, down from 70 per cent, while sugar products also saw reductions across multiple categories.

To ease the transition, authorities granted a 90-day grace period for importers who had initiated transactions before April 1 to clear goods at the previous rates. New excise duties and a green tax surcharge are also set to take effect from July 1, 2026. Analysts say the reforms could help curb inflation, stimulate economic activity, and provide some relief to households facing mounting financial pressure.

source: Business day