Fiscal policy, tariff amendments’ll boost local manufacturing —CPPE

By Yinka Kolawole

The 2026 Fiscal Policy measures and Tariff Amendments recently approved by the Federal Government will engender a boost in domestic manufacturing and import substitution in the country, the Centre for the Promotion of Private Enterprise (CPPE) has stated.

The measures include revisions to the Import Adjustment Tax (IAT) 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 categories of imported vehicles. In addition, a National List comprising 127 items – largely intermediate goods and industrial inputs – which attracts concessional tariffs of 0-10%, aimed at enhancing manufacturing competitiveness.

In a review of the policy framework, Chief Executive Officer of CPPE, Dr Muda Yusuf, said it signals a decisive and strategic pivot towards strengthening domestic production, deepening industrialisation and reducing import dependence – consistent with Nigeria’s medium-term economic transformation objectives.

His words: “From an investor perspective, the framework presents a mix of significant opportunities and risks, depending on sector positioning and business models.

“A major highlight of the policy is the upward review of tariffs on a broad range of imported finished goods – including food, plastics, textiles, and metal products – with combined tariff and levies ranging between 20% and 70%.

“This measure raises the landing cost of imports and strengthens the competitive position of domestic producers. Given Nigeria’s continued reliance on imports across several consumption categories, this policy has the potential to materially reshape market dynamics.

“For investors, this creates strong incentives for: expansion of domestic manufacturing capacity; backward integration across value chains; and increased investment in import-substitution industries

“Sectors such as agro-processing, light manufacturing, packaging, and basic metals are particularly well positioned to benefit. The policy is expected to improve capacity utilisation – currently suboptimal in many manufacturing subsectors – and enhance pricing power for domestic firms.”

Yusuf further stated: “The 2026 fiscal policy measures represent a bold and necessary step towards economic restructuring, industrialisation, and enhanced economic resilience.

“For private investors, the framework presents substantial upside potential in manufacturing, agro-processing, recycling, and green industries. However, it also introduces risks for import-dependent sectors and consumer-facing businesses.

“Ultimately, the beneficiaries in this evolving policy landscape will be investors who align with the domestic production agenda, integrate into local value chains, and proactively adapt to Nigeria’s shifting economic structure.”