The Federal Government has approved a waiver on import duties covering mass transit buses, electric vehicles and manufacturing machinery.
The move follows a directive from President Bola Ahmed Tinubu to key economic officials to introduce measures aimed at cushioning the impact of the ongoing Middle East crisis on Nigerians, particularly amid rising fuel prices.
According to a statement shared in an X post on Monday by Dada Olusegun, Special Assistant to the President on Social Media, the policy is part of broader fiscal interventions designed to ease economic strain and reduce inflationary pressure.
Olusegun said the Tinubu administration had approved significant reductions in import duties to lower inflation, support businesses and improve affordability for consumers.
“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.
The Israel–US–Iran conflict, ongoing since 28 February 2026, has disrupted global oil supply chains, particularly around the Strait of Hormuz, which accounts for about 20 per cent of global crude flow.
Under the new policy, import duties on electric vehicles have been cut from 5 per cent to zero, while mass transit buses have also been fully exempted, down from 5 per cent, to encourage cheaper transport and greener mobility options.
Levies on manufacturing machinery have likewise been removed, falling from 5 per cent to zero, in a bid to reduce production costs and boost industrial output.
Raw cane sugar duties have been adjusted from 70 per cent to between 55 and 57.5 per cent, while crude palm oil tariffs have been reduced from 35 per cent to 28.75 per cent.
Additional changes include a reduction in passenger vehicle duties from 70 per cent to 40 per cent, bulk rice from 70 per cent to 47.5 per cent, and broken rice from 70 per cent to 30 per cent.
In the industrial and construction sector, tariffs on steel sheets and coils have been reduced from 45 per cent to 35 per cent, while glazed ceramic tiles have been cut from 55 per cent to 46.25 per cent to ease construction and production costs.
A 90-day transition period beginning 1 April has also been introduced to allow gradual market adjustment and prevent sudden shocks.
The Middle East crisis has caused volatility in global energy markets, pushing up shipping and insurance costs across several economies, including Nigeria.
Since the conflict began, crude oil prices rose as high as $120 per barrel due to attacks on energy infrastructure and restricted shipping routes.
Prices later dropped below $95 per barrel following a ceasefire announcement on 8 April, with Brent crude and WTI both falling by more than 15 per cent.
However, tensions escalated again on 12 April after US President Donald Trump ordered a naval blockade of vessels entering or leaving the Strait of Hormuz following the collapse of peace talks with Iran in Islamabad.
The renewed escalation pushed prices higher again, with Brent crude exceeding $102 per barrel and WTI reaching $104.16 per barrel on 13 April.