The Federal Government has waived import duties on mass transit buses, electric vehicles (EVs) and manufacturing machinery, in a move aimed at cushioning the economic impact of the Middle East crisis and rising fuel prices.
President Bola Ahmed Tinubu’s directive to economic officials followed the ongoing Israel–US–Iran conflict, which began on 28 February 2026 and has severely disrupted global oil flows, particularly through the Strait of Hormuz. According to a post on X by the President’s Special Assistant on Social Media, Dada Olusegun, the new fiscal measures are designed to ease economic pressure on Nigerians and curb inflation.
Under the policy, import duties on EVs have been reduced from 5% to 0%, while mass transit buses have also received a full duty exemption, down from 5% to 0%, to encourage cheaper public transport and cleaner mobility. The levy on manufacturing machinery has been scrapped entirely, falling from 5% to 0%, to lower production costs and boost industrial activity.
Other tariff adjustments include raw cane sugar, reduced from 70% to between 55% and 57.5%; crude palm oil, from 35% to 28.75%; passenger vehicles, from 70% to 40%; bulk rice, from 70% to 47.5%; and broken rice, from 70% to 30%. In the industrial and construction sector, duties on steel sheets and coils have been cut from 45% to 35%, while glazed ceramic tiles have been reduced from 55% to 46.25%.
A 90-day transition phase, beginning 1 April, has been introduced to allow markets to adjust gradually and avoid sudden shocks.
The Middle East crisis has driven volatility in energy prices and raised shipping and insurance costs globally. Crude oil prices surged as high as $120 per barrel due to attacks on energy infrastructure and restricted shipping routes. Following a ceasefire announcement on 8 April, Nigerian crude and major contracts fell below $95 per barrel, with Brent and WTI dropping by more than 15%.
However, on Sunday 12 April, US President Donald Trump ordered a naval blockade of the Strait of Hormuz after peace talks between the United States and Iran collapsed in Islamabad. The renewed escalation pushed Brent crude above $102 per barrel and WTI to $104.16 on 13 April.
