The Tinubu Media Support Group (TMSG) has described the federal government’s swift decision to reduce import tariffs as a strategic move to cushion the effects of the cost of living on Nigerians in the aftermath of the ongoing Persian Gulf crisis.
In a statement signed by its Chairman Emeka Nwankpa and Secretary Dapo Okubanjo, TMSG argued that the newly introduced fiscal policy measures were better than reintroducing fuel subsidy.
It said: “At the outset of the tension in the Middle East that led to a spike in the price of crude oil and its attendant effects on the cost of living, many analysts had called on the President Bola Tinubu administration to consider reintroducing fuel subsidy.
“There were also others like the Nigeria Labour Congress (NLC) which wanted the windfall expected from higher crude prices to be diverted into wage awards and increased salaries for civil servants.
“But with the federal government’s decision to roll out new fiscal policy measures, targeted at reducing import duties on a variety of goods and services with effect from April 1 2026, it is clear that the authorities are opting for a more strategic approach rather than knee-jerk initiatives that will roll back the gains of ongoing economic reforms.
“A cursory look at the policy measures shows that they are impressive steps to ease the cost of living without eroding the gains of the flagship twin policies of subsidy removal and the harmonised forex transaction windows.”
The group gave insight into some of the goods affected by the new fiscal policy measures.
“For the avoidance of doubt, the new fiscal policy framework entails amongst others, a substantial cut in tariffs on 127 items, an Import Adjustment Tax (IAT) on 192 tariff lines, and an import prohibition list covering 17 items from non-ECOWAS countries.
“In more specific terms, the government has reduced import tariffs on fully-built passenger vehicles, four-wheel drive cars, and station wagons from 70 per cent to 40 per cent.
“We acknowledge that duties on food imports have also recorded significant adjustments. For instance, bulk rice now attracts a duty of 47.5 per cent, down from 70 per cent, while the tariff on broken rice has been reduced to 30 per cent. Crude palm oil imports are now fixed at a rate of 28.75 per cent, while that of raw sugar ranges between 55 and 57.5 per cent. Refined salt for human consumption has been adjusted to 55 per cent.
“In addition, there is a reduction in duties on several industrial and household items including envelopes which now attract 40 per cent duty, from the previous rate of 50 per cent, while notebooks are set at 30 per cent. Ceramic tiles have also been adjusted, with unglazed tiles at 35 per cent and glazed tiles at 46.25 per cent.
“We are also aware that the revised fiscal policy framework introduced new taxes and protections aimed at supporting local industries and economic growth.
“While we acknowledge the possible impact on local production, we invite Nigerians to note that opening the national economy to global product competition could also facilitate efficiency of domestic producers which will ultimately benefit the consuming population in terms of pricing and quality of production.
“We however agree with the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, that the decision to lower tariffs on some key inputs for local industries would go a long way to boost local production as well as buffer against global shocks like the one Nigeria is currently witnessing in the aftermath of the Middle East crisis.
“It is safe to say that these are deliberate measures aimed at protecting the economy and the citizenry, and not necessarily to hurt domestic businesses”, TMSG added.
The group assured Nigerians of the Federal Government’s fidelity to its responsibility of promoting the welfare and living standards of the generality of all Nigerians irrespective of their creed, ethnicity, religion or political affiliations.
