Nigeria will reduce import duties on food, vehicles, and industrial inputs starting July 1 as part of efforts to control inflation and reduce the rising cost of living, the presidency said on Tuesday.
According to Reuters, the country, Africa’s most populous, is lowering tariffs on items including rice, sugar, palm oil, passenger vehicles, and construction materials.
It will also fully exempt electric vehicles, mass-transit buses, and manufacturing machinery, according to a post from the President Bola Ahmed Tinubu Media Centre on X.
Inflation, which dropped to 15.06% in February from a peak of about 33% in December 2024, remains elevated compared to regional peers and has recently faced renewed upward pressure following the Iran war, according to the World Bank last week.
Under the new policy, duties on passenger vehicles will fall to 40%, bulk rice to 47.5%, and raw sugar cane to between 55% and 57.5%, down from 70%. Taxes on palm oil will also be reduced to 28.75% from 35%.
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The government said these measures are part of wider fiscal reforms aimed at reducing inflation, lowering household expenses, and cutting input costs for businesses.
Finance Minister Wale Edun said on Monday that the country will also seek financial support at this week’s IMF–World Bank Spring Meetings, as the Iran war has pushed up fuel prices and complicated ongoing economic reforms.
Since the conflict began, petrol prices have increased by more than 50% to about 1,330 naira per litre, while diesel has risen by over 70% to around 1,550 naira per litre, adding pressure on transport, manufacturing, and small businesses.
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Image Credit: 21st Century Chronicle
