Nigeria cuts import duties to ease cost of living and support businesses
Nigeria has announced a sweeping reduction in import duties on several key goods as part of efforts to tackle rising living costs and support struggling businesses.
The policy, set to take effect from July 1, was introduced by the administration of Bola Ahmed Tinubu, which is under increasing pressure to address inflation and economic hardship across the country.
According to the presidency, tariffs will be reduced on essential items including rice, sugar, palm oil, passenger vehicles, and construction materials. Under the new structure, duties on passenger vehicles will fall to 40 percent, while bulk rice tariffs will drop to 47.5 percent. Raw sugar cane will attract tariffs ranging between 55 and 57.5 percent, and palm oil duties will be reduced to 28.75 percent.
In a significant boost to industrial development, electric vehicles, mass-transit buses, and manufacturing machinery will be fully exempt from import duties. Officials say this move is aimed at encouraging investment, improving transportation systems, and supporting local production.
The tariff cuts form part of broader government efforts to curb inflation, which, although easing, remains a major concern. Nigeria’s inflation rate dropped to 15.06 percent in February from a peak of around 33 percent in December 2024, but prices of essential goods and services remain high for many households.
Authorities have also pointed to global economic pressures as a contributing factor. Rising fuel costs linked to ongoing geopolitical tensions, particularly involving Iran, have added strain to Nigeria’s economy.
Finance Minister Wale Edun said the government is engaging with international financial institutions, including the International Monetary Fund and the World Bank, to seek additional support and stabilise the economy.
Meanwhile, petrol prices in the country have surged by more than 50 percent, increasing transportation and operational costs for businesses nationwide.
The government hopes the new import duty reductions will ease pressure on consumers, stimulate economic activity, and provide relief to industries grappling with rising costs in an increasingly challenging global environment.
