The Centre for the Promotion of Private Enterprise (CPPE) says Nigeria’s 2026 fiscal policy measures and tariff amendments recently approved by the Federal Government are expected to strengthen domestic manufacturing and promote import substitution.
The policy package includes revisions to the Import Adjustment Tax covering 192 tariff lines, selective import restrictions, tariff reductions on critical industrial inputs, excise duty adjustments, and the introduction of a green tax on selected imported vehicles.
It also introduces a National List of 127 items—mainly intermediate goods and industrial inputs—at concessional tariff rates of 0 to 10 per cent, aimed at improving manufacturing competitiveness.
Speaking on the policy, CPPE Chief Executive Officer, Dr. Muda Yusuf, said the framework reflects a strategic shift towards boosting local production, deepening industrialisation, and reducing dependence on imports.
He noted that the upward review of tariffs on several imported finished goods, including food products, plastics, textiles, and metal items, with combined duties ranging between 20 and 70 per cent, will significantly increase the cost of imports.
According to him, this development will enhance the competitiveness of local manufacturers and reshape market dynamics in Nigeria’s consumption sectors.
Yusuf explained that the policy creates opportunities for expansion in domestic manufacturing capacity, backward integration across value chains, and investment in import-substitution industries.
He added that sectors such as agro-processing, light manufacturing, packaging, and basic metals are well positioned to benefit, as the reforms are expected to improve capacity utilisation and strengthen pricing power for local firms.
Describing the reforms as bold and necessary, Yusuf said the fiscal measures align with Nigeria’s economic restructuring and industrialisation goals.
He, however, noted that while the policy offers significant opportunities for investors in manufacturing, agro-processing, recycling, and green industries, it may pose challenges for import-dependent businesses and consumer-facing sectors.
“Ultimately, the beneficiaries in this evolving policy landscape will be investors who align with the domestic production agenda, integrate into local value chains, and adapt to Nigeria’s shifting economic structure,” he stated.
Margaret ABAH
