The Federal Government has approved a waiver on import duties for mass transit buses, electric vehicles, and key manufacturing machinery as part of measures to cushion the impact of rising fuel costs and economic pressures.
Gatekeepers News reports that the directive, approved by President Bola Ahmed Tinubu, is aimed at mitigating the effects of the ongoing Israel–US–Iran conflict on Nigerians, particularly amid volatility in global oil prices.
Details of the policy were disclosed in a post on X by Dada Olusegun, Special Assistant to the President on Social Media, who said the move forms part of broader fiscal interventions to reduce inflation and support economic stability.
“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.
Key Duty Reductions
Under the new policy, import duties on electric vehicles have been cut from 5 per cent to zero, while mass transit buses now enjoy full duty exemption, also reduced from 5 per cent to zero, in a bid to promote affordable public transportation and cleaner mobility.
Similarly, import levies on manufacturing machinery have been scrapped, dropping from 5 per cent to zero to lower production costs and stimulate industrial growth.
Other tariff adjustments include:
- Raw cane sugar reduced from 70% to between 55% and 57.5%
- Crude palm oil lowered from 35% to 28.75%
- Passenger vehicle duties cut from 70% to 40%
- Bulk rice reduced from 70% to 47.5%, and broken rice to 30%
- Steel sheets and coils reduced from 45% to 35%
- Glazed ceramic tiles lowered from 55% to 46.25%
The government has also introduced a 90-day transition period beginning April 1 to allow markets adjust gradually and prevent sudden disruptions.
Global Crisis Driving Policy Shift
The policy comes against the backdrop of the ongoing Middle East tensions, which have disrupted global oil supply chains, particularly around the Strait of Hormuz — a critical route for about 20 per cent of the world’s crude oil.
Since the crisis began, oil prices have experienced sharp fluctuations, rising as high as $120 per barrel before briefly easing following a ceasefire announcement on April 8. However, renewed escalation after Donald Trump ordered a naval blockade of vessels in the Strait has pushed prices upward again, with Brent crude exceeding $102 per barrel and WTI climbing above $104 per barrel as of April 13.
Officials say the tariff cuts are expected to ease inflationary pressures, reduce the cost of transportation and goods, and support businesses navigating a challenging global economic environment.
