The Federal Government has waived import duties on electric vehicles, mass transit buses and manufacturing machinery as part of new fiscal measures aimed at easing economic pressure on Nigerians and curbing inflationary pressures.
The disclosure was contained in an X post on Monday by Dada Olusegun, Special Assistant to the President on Social Media.
The development followed President Bola Ahmed Tinubu’s directive to key economic officials to design measures to cushion the impact of the ongoing Middle East crisis on Nigerians, particularly amid rising fuel prices.
What they are saying
The Special Assistant to the President on Social Media said the Tinubu administration approved a broad set of import duty reductions to lower inflation, support businesses and improve affordability for consumers.
- “President Tinubu’s administration has approved a massive reduction in import duties of selected products in order to further reduce inflation, empower local businesses and increase affordability for consumers,” he said.
Under the new policy, import duties on electric vehicles were reduced from 5% to 0%. Mass transit buses were also granted full duty exemption, down from 5% to 0%, to encourage cheaper public transportation and support cleaner mobility alternatives.
The levy on manufacturing machinery was equally scrapped, falling from 5% to 0%, in a move aimed at lowering production costs and boosting industrial activity.
More insights
Beyond these categories, the policy introduced broader tariff adjustments across key import segments.
Passenger vehicle duties were reduced from 70% to 40%, while tariffs on bulk rice were cut from 70% to 47.5% and broken rice from 70% to 30%.
- Raw cane sugar was adjusted from 70% to between 55% and 57.5%, while crude palm oil duties were reduced from 35% to 28.75%.
- In the industrial and construction sector, steel sheets and coils were lowered from 45% to 35%, while glazed ceramic tiles were reduced from 55% to 46.25%, in a move aimed at easing production and construction costs.
The post also confirmed a 90-day transition phase beginning April 1, described as a “Transition Phase”, to allow markets to adjust gradually and avoid sudden shocks as the new tariff regime takes effect.
Backstory
President Bola Tinubu had earlier directed key economic officials to develop measures to mitigate the impact of the ongoing Middle East crisis on Nigerians amid rising fuel prices.
- The directive was contained in a statement issued on Friday by Presidential Spokesperson, Bayo Onanuga, following the president’s remarks at a civic reception in Yenagoa.
- At the time, fuel prices had surged to about N1,350 per litre, driven by escalating tensions in the Middle East that disrupted global energy supply chains.
- Tinubu said his administration was aware of the mounting economic pressure on citizens and was taking steps to respond, stressing that government policy must reflect global economic realities while still prioritising citizens’ welfare.
He directed the Ministries of Finance and Budget, alongside the Head of Service, to explore options to ease economic hardship, noting that governance must translate into tangible improvements in roads, power, jobs and broader economic opportunities.
What you should know
The Israel–US–Iran conflict, ongoing since February 28, 2026, has severely disrupted global oil flows, particularly around the Strait of Hormuz, which handles about 20% of global crude supply.
The crisis has driven sharp volatility in energy prices and raised shipping and insurance costs across multiple economies, including Nigeria.
- Major marine insurers, including Gard, Skuld, NorthStandard, London P&I Club and American Club, withdrew war risk coverage for vessels in the Gulf on March 1, 2026, increasing maritime risk exposure and freight costs.
- Since the start of the conflict, crude oil prices surged as high as $120 per barrel due to attacks on energy infrastructure and restricted shipping routes.
- After a ceasefire announcement on April 8, Brent crude and WTI fell by more than 15%, pushing Nigerian crude and major contracts below $95 per barrel.
However, on Sunday, April 12, U.S. President Donald Trump ordered the United States Navy to begin a blockade of all ships entering or leaving the Strait of Hormuz, following the collapse of peace talks between the United States and Iran in Islamabad.
The renewed escalation triggered another surge in oil prices, with Brent crude rising above $102 per barrel and WTI climbing to $104.16 per barrel on April 13, reflecting renewed fears of supply disruption.
