FG Cuts Import Duties on Buses, EVs, Machinery

The Federal Government has approved a sweeping reduction in import duties on key goods, including mass transit buses, electric vehicles, and manufacturing machinery, as part of efforts to cushion the impact of rising fuel prices and global economic pressures.

The policy follows a directive by President Bola Ahmed Tinubu to economic managers to introduce measures aimed at mitigating the effects of the ongoing Middle East crisis on Nigerians.

Details of the decision were disclosed in a statement shared on X by the President’s Special Assistant on Social Media, Dada Olusegun, who described the move as part of broader fiscal interventions to curb inflation and support businesses.

“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 have been reduced from five per cent to zero, while mass transit buses also received full duty exemption, dropping from five per cent to zero.

The levy on manufacturing machinery has similarly been scrapped to lower production costs and boost industrial output.

The measures come amid disruptions in global oil supply linked to tensions involving Israel, the United States and Iran, particularly around the Strait of Hormuz, a key route for global crude shipments.

In addition to transport and industrial equipment, the government approved adjustments across several other sectors.

Duties on raw cane sugar were reduced from 70 per cent to between 55 and 57.5 per cent, while crude palm oil tariffs dropped from 35 per cent to 28.75 per cent.

Tariffs on passenger vehicles were cut from 70 per cent to 40 per cent, while bulk rice duties were reduced from 70 per cent to 47.5 per cent, and broken rice from 70 per cent to 30 per cent.

In the construction and manufacturing space, duties on steel sheets and coils were lowered from 45 per cent to 35 per cent, while glazed ceramic tiles were reduced from 55 per cent to 46.25 per cent.

The government also introduced a 90-day transition window beginning April 1, described as a “Transition Phase”, to allow markets adjust gradually and prevent sudden disruptions.