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Nigeria to cut import duties on food, vehicles to curb inflation

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Finance Minister ⁠Wale Edun said on Monday that the government will seek financial support at this week’s International Monetary Fund-World ​Bank Spring meetings.

Nigeria will slash import duties on food, vehicles and industrial inputs from July 1, the presidency ​said this Tuesday, as Africa’s most populous country ‌seeks to rein in inflation and ease rising living costs.

The cuts include sharp tariff reductions on rice, sugar, palm oil, passenger vehicles and construction ​materials, with full exemptions for electric vehicles, mass-transit buses ​and manufacturing machinery, a post by the President Bola ⁠Ahmed Tinubu Media Centre on X said.

Inflation eased to 15.06% ​in February from a peak of about 33% in December ​2024, but remains high by regional standards and has come under renewed pressure since the start of the Iran war, the World Bank said ​last week.

Under the new regime, duties on passenger vehicles will ​fall to 40%, bulk rice to 47.5%, and raw sugar cane to ‌55%-57.5% ⁠from 70%. Levies on palm oil will be cut to 28.75% from 35%.

The government said the measures are part of broader fiscal efforts to curb inflation, lower household costs, and reduce ​input prices for ​businesses.

Finance Minister ⁠Wale Edun said on Monday that the government will seek financial support at this week’s International Monetary Fund-World ​Bank Spring meetings as the Iran war pushed ​up fuel ⁠costs at home and complicated ongoing reform.

 

—Reuters—

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