Fiscal policy, tariff amendments’ll boost local manufacturing —CPPE
By Yinka Kolawole
The Federal Government’s recently approved 2026 Fiscal Policy measures and Tariff Amendments are expected to enhance domestic manufacturing and encourage import substitution, according to the Centre for the Promotion of Private Enterprise (CPPE).
The new measures include adjustments to the Import Adjustment Tax covering 192 tariff lines, selective import restrictions, and reductions on tariffs for critical industrial inputs. There will also be excise duty modifications and the introduction of a green tax on selected categories of imported vehicles. A National List of 127 items, primarily intermediate goods and industrial inputs, will benefit from concessional tariffs ranging from 0% to 10%, aimed at bolstering the competitiveness of local manufacturers.
Dr. Muda Yusuf, Chief Executive Officer of CPPE, remarked that these changes signal a strategic shift towards enhancing domestic production and reducing reliance on imports, aligning with Nigeria’s medium-term economic transformation objectives.
“From an investor perspective, the framework presents a mix of significant opportunities and risks, depending on sector positioning and business models,” Yusuf said.
A notable aspect of the policy is the increase in tariffs on a wide array of imported finished goods—including food, plastics, textiles, and metal products—with combined tariffs and levies reaching between 20% and 70%. This increase is expected to elevate the cost of imports, thereby enhancing the competitive stance of domestic producers.
Given Nigeria’s ongoing reliance on imports across numerous consumption categories, the CPPE suggests that these policy changes could significantly alter market dynamics. Yusuf emphasized that these measures create incentives for the expansion of domestic manufacturing capacity, backward integration across supply chains, and increased investment in industries focused on import substitution.
Sectors such as agro-processing, light manufacturing, packaging, and basic metals are particularly well positioned to benefit from these changes. The policy aims to improve capacity utilization, which has been suboptimal in many manufacturing subsectors, and enhance pricing power for domestic firms.
Yusuf further characterized the 2026 fiscal policy measures as a bold and necessary step towards economic restructuring, industrialization, and improved economic resilience.
“For private investors, the framework offers substantial potential in manufacturing, agro-processing, recycling, and green industries,” he noted. “However, it also brings risks for sectors heavily reliant on imports and for consumer-facing businesses.”
In conclusion, Yusuf stated that the beneficiaries in this evolving policy landscape will be those investors who align with the domestic production agenda, integrate into local value chains, and adapt proactively to Nigeria’s changing economic structure.
