FG Slashes Import Duties on Drugs, Rice, and Cars

The Federal Government has triggered a sharp debate across Nigeria’s industrial landscape by slashing import tariffs on 127 items. A new fiscal policy, signed by Finance Minister Wale Edun, cuts duties on essential medicines, rice, and vehicles to ease the cost of living. While the move offers immediate relief to consumers, it has drawn fire from local producers who fear they cannot compete with cheaper imports. The policy highlights the difficult balance between fighting inflation and protecting the domestic industry.

Pharmacists have cautiously welcomed the reductions, particularly a drop in duties for breathing apparatus and gas masks to zero. However, the tariff for antimalarial drugs remains at 20%, a figure critics say is too high for such a critical need. Industry leaders argue that duty cuts alone will not fix the sector. They point to weak regulation and the persistence of counterfeit drugs as the real barriers to affordable healthcare. Without a “special vehicle” to support local manufacturing, they warn that Nigeria will remain dangerously reliant on foreign pills.

Rice farmers are far less optimistic, describing the policy as a “serious setback” for national food security. The duty on bulk rice has dropped from 70% to 47.5%, while broken rice now sits at 30%. Farmers argue that this creates an uneven playing field as they struggle with the soaring costs of fertiliser and diesel. There is a palpable fear that local harvest prices will be forced down, leading to massive losses. Some agricultural experts are already advising farmers to scale back production to avoid financial ruin.

The automobile sector is similarly unsettled by the sudden shift. Analysts worry that the progress made by local assembly plants could be erased overnight. By making fully built imported cars cheaper, the government may be inadvertently punishing those who invested millions in local factories. Critics suggest the state should have cut duties on spare parts instead. This would have supported local mechanics and assemblers rather than “cash and carry” importers who create few jobs.

Inconsistent policy remains the greatest threat to long-term investment in Nigeria. Local manufacturers often find themselves blindsided by executive orders that favour short-term consumer relief over long-term industrial growth. Professional bodies, particularly in the pharmaceutical space, are now calling for a presidential committee to lead sector reforms. They argue that technical policies require expert drivers to ensure they do not fail like previous interventions.

The 2026 fiscal policy reflects a government under pressure to lower prices quickly. While the treasury may lose revenue and farmers may lose profit, the average Nigerian might finally see a drop in the price of a bag of rice or a bottle of medicine. The ultimate test will be whether these savings actually reach the pocket of the common man. For now, the “Made in Nigeria” campaign appears to have taken a back seat to the war on inflation.