The Federal Government has announced the removal of import duties on electric vehicles, mass transit buses, and manufacturing machinery as part of new fiscal measures designed to reduce inflation and ease economic pressure on Nigerians. The policy was disclosed in a statement shared on X by Dada Olusegun, who explained that the changes form part of broader economic interventions by the administration of Bola Ahmed Tinubu.
According to the presidential aide, the government has approved significant reductions in import duties on selected goods in order to lower consumer prices, support businesses, and improve affordability across several sectors of the economy. Under the revised tariff regime, import duties on electric vehicles have been reduced from five percent to zero percent, while mass transit buses will also enter the country duty-free, down from the previous five percent tariff. The measure is expected to encourage the adoption of cleaner mobility solutions and help reduce transportation costs for commuters.
The government has also eliminated the five percent import duty previously imposed on manufacturing machinery, a move aimed at reducing production costs and encouraging industrial growth. Officials say the policy is intended to strengthen Nigeria’s manufacturing sector by making it easier and cheaper for businesses to acquire industrial equipment.
Beyond these measures, the government has introduced wider tariff adjustments across several import categories. Import duties on passenger vehicles have been reduced from 70 percent to 40 percent, while tariffs on bulk rice were lowered from 70 percent to 47.5 percent and those on broken rice cut to 30 percent. Duties on raw cane sugar were adjusted from 70 percent to a range between 55 percent and 57.5 percent, while tariffs on crude palm oil were reduced from 35 percent to 28.75 percent.
In the construction and industrial sectors, duties on steel sheets and coils were reduced from 45 percent to 35 percent, while tariffs on glazed ceramic tiles were lowered from 55 percent to 46.25 percent. According to the government, these adjustments are designed to ease production costs and support economic activities in sectors such as manufacturing, housing, and infrastructure development.
Authorities also confirmed that a 90-day transition phase beginning April 1 will allow businesses and markets to gradually adjust to the new tariff structure. The transition period is intended to prevent market disruptions while ensuring a smooth implementation of the revised import duty framework.
The new measures follow a directive by President Tinubu for key economic officials to design strategies to cushion the economic impact of the ongoing Middle East crisis on Nigerians. The directive was earlier disclosed by presidential spokesperson Bayo Onanuga after the president spoke at a civic reception in Yenagoa. At the time, petrol prices in Nigeria had climbed to around ₦1,350 per litre, largely driven by disruptions in global energy markets.
The crisis in the Middle East has significantly affected global oil supply chains, particularly around the Strait of Hormuz, through which about 20 percent of the world’s crude oil shipments pass. Escalating tensions involving Israel, Iran, and the United States have contributed to sharp fluctuations in global energy prices.
The conflict has also affected maritime trade, with several major marine insurance providers—including Gard, Skuld, NorthStandard, London P&I Club, and American Club—suspending war risk coverage for vessels operating in the Gulf region in early March 2026. The move significantly increased shipping risks and freight costs.
Crude oil prices surged to around $120 per barrel at the height of the tensions due to attacks on energy infrastructure and disruptions to shipping routes. Although prices briefly declined after a ceasefire announcement on April 8, renewed geopolitical tensions triggered another spike after Donald Trump ordered the United States Navy to enforce a blockade of ships entering or leaving the Strait of Hormuz following the collapse of peace talks between Washington and Tehran in Islamabad.
The renewed escalation pushed oil prices higher again, with Brent crude rising above $102 per barrel and West Texas Intermediate reaching $104.16 per barrel by April 13. These developments have continued to shape global energy markets and have direct implications for fuel prices and economic conditions in oil-importing countries such as Nigeria.
