Nigeria cuts import duties to ease living costs
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Nigeria will cut import duties on a range of goods from July 1 in an effort to ease living costs and support businesses as inflation and fuel prices remain a burden for consumers. The presidency said the changes will cover rice, sugar, palm oil, passenger vehicles and construction materials, while electric vehicles, mass-transit buses and manufacturing machinery will be fully exempt.
Under the new rates, duties on passenger vehicles will fall to 40%, bulk rice to 47.5%, and raw sugar cane to between 55% and 57.5%. Palm oil duties will drop to 28.75%, marking a broad easing of import costs across key consumer and industrial goods.
The move is part of President Bola Ahmed Tinubu’s wider effort to reduce inflation and improve affordability after a long period of price pressure. Nigeria’s inflation eased to 15.06% in February from about 33% in December 2024, but it remains high enough to keep pressure on living standards.
Officials said the policy is also being shaped by external shocks, including the Iran war, which has pushed up global fuel prices and widened the cost burden for transport and businesses. Petrol prices have risen by more than 50%, and Finance Minister Wale Edun has said Nigeria will seek support at upcoming IMF and World Bank meetings.
The decision highlights the government’s balancing act between protecting consumers and maintaining economic momentum. By lowering duties on basic goods and key machinery, Abuja is trying to reduce the immediate pain of inflation while also supporting investment and industrial activity.
