Tariff Cuts Divide Sectors as FG Targets Cheaper Imports in 2026 Policy

The Federal Government’s latest fiscal policy, which lowers import duties on pharmaceuticals, rice, automobiles, and other goods, has triggered a sharp divide across key sectors of the economy.

Announced in an April 1, 2026 document signed by Finance Minister Wale Edun, the policy revises tariffs on 127 product categories. Among the changes is a 20 per cent duty on antimalarial drugs, part of a broader push to ease import costs and stimulate growth.

For the pharmaceutical sector, the move signals potential relief. Industry players say lower duties could improve access to essential medicines, though longstanding structural issues remain unresolved.

President of the Pharmaceutical Society of Nigeria, Ayuba-Tanko Ibrahim, welcomed the development but warned that results would depend on deeper reforms.

“A drop in duties… is quite laudable… This should signpost a drop in prices… and promote accessibility.”

Still, he stressed the urgency of addressing regulatory gaps and counterfeit drugs.

“Government must see a need for urgent intervention… to fix fundamental issues pertaining to local manufacture and drug prices.”

Echoing similar concerns, former PSN President Olumide Akintayo questioned why previous interventions have failed to deliver.

“This development throws up a kaleidoscope of colours… why are we not getting results…?”

He blamed poor implementation and reliance on non-experts, citing past policy failures.

The National Chairman of ACPN, Ambrose Ezeh, also called for a professionally driven approach.

“This is both a technical and professional matter…”

Meanwhile, Engraved Pharmacy CEO, Jonah Okotie, pointed to modest gains.

“On breathing apparatuses… there is a reduction… expected to see prices come down.”

Agriculture Pushback Intensifies

However, the policy has drawn strong opposition from the agricultural sector, particularly rice producers who fear being undercut by cheaper imports.

AFAN President, Mohammed Magaji, said the move could discourage farming.

“It discourages the Nigerian farmers… there is no good price, there is no market.”

JetFarmsNG’s Jeremiah Olanrenwaju warned of deeper consequences, noting that reduced tariffs—from 70% to 47.5% on bulk rice—would tilt the market in favour of imports.

“This policy is a serious setback… At harvest, many of us may be forced to sell below cost.”

He urged farmers to scale cautiously and called on government to provide urgent support.

Auto Industry Fears Reversal of Gains

In the automobile sector, concerns centre on the survival of local assembly plants.

Professor Oscar Odibo warned that cheaper imported cars could undermine years of investment.

“The progress recorded by the local automotive assemblers will disappear…”

He recommended cutting duties on spare parts instead to strengthen local production.

Similarly, BKG Exhibitions boss, Ifeanyi Agwu, questioned the policy’s clarity and direction.

“What has the government done to secure the local assemblies?…”

He stressed the need for clarity on whether tariff cuts apply to both fully built vehicles and components.

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