The Federal Government has approved sweeping import duty waivers on mass transit buses, electric vehicles, and key industrial inputs as part of measures to cushion the economic impact of rising global energy costs.
The policy, introduced under the directive of President Bola Tinubu, is aimed at reducing inflation, lowering transportation costs, and supporting local industries amid ongoing global uncertainties linked to the Middle East crisis.
Details of the initiative were disclosed on Monday by the President’s Special Assistant on Social Media, Dada Olusegun, who said the reforms form part of a broader fiscal response to stabilise the economy and improve affordability for Nigerians.
Under the new framework, import duties on electric vehicles have been reduced from 5 per cent to zero, while mass transit buses now enjoy full duty exemption. The move is expected to promote cleaner transportation alternatives and make public commuting more affordable.
In a similar vein, the government has eliminated import levies on manufacturing machinery, a step designed to reduce production costs and stimulate industrial growth.
The tariff adjustments also extend to several essential commodities. Duties on raw cane sugar have been reduced from 70 per cent to between 55 and 57.5 per cent, while crude palm oil tariffs were lowered from 35 per cent to 28.75 per cent.
Further reductions were announced across other key sectors. Import duties on passenger vehicles dropped from 70 per cent to 40 per cent, while tariffs on bulk rice were cut to 47.5 per cent and broken rice to 30 per cent. In the construction and industrial sector, duties on steel sheets and coils were reduced from 45 per cent to 35 per cent, and glazed ceramic tiles from 55 per cent to 46.25 per cent.
To ensure a smooth transition, the government has introduced a 90-day adjustment period beginning April 1, allowing businesses and markets to adapt gradually to the new tariff regime.
The policy comes against the backdrop of heightened global volatility triggered by tensions involving the United States, Israel, and Iran, which have disrupted oil supply chains, particularly around the Strait of Hormuz—a critical route for global crude shipments.
Recent developments, including a naval blockade ordered by Donald Trump, have contributed to sharp fluctuations in oil prices, with crude briefly exceeding $120 per barrel before easing and then rising again above $100 following renewed tensions.
The Federal Government said the import duty waivers are intended to shield Nigerians from the ripple effects of these global shocks, particularly rising fuel prices, increased transportation costs, and inflationary pressures.
Officials expressed optimism that the measures will not only provide short-term relief but also strengthen economic resilience by encouraging investment, boosting local production, and improving access to essential goods and services.
