Nigeria Slashes Import Duties on Steel, Machinery, and EVs to Boost Economy

By Ifeyinwa Ike

The Federal government has announced significant reductions in import duties on key steel products, electrical equipment, heavy machinery, and other essentials, alongside exemptions from a new green tax surcharge.

Officials describe the reforms as a strategic move to balance revenue needs with economic growth, support local manufacturing, and lower costs for critical imports.

Major Duty Cuts on Steel and Reinforcements are
Cold-rolled steel (under 0.25% carbon): Reduced to 15%.
Hot-rolled deformed steel bars: Down to 35% from 45%.
Steel rods (5.5mm–14mm): Also 35% from 45%.
Reductions in Electrical and Industrial Goods
Other key adjustments include:
Electrical apparatus like fuses: 10% from 20%.

Railway and tramway locomotives (SKD/CKD): 0% from 5%.
Cargo ships over 500 tonnes: 0% from 5%.
Breathing appliances and gas masks: 0% from 5%.

Agricultural and manufacturing machinery: 0% from 5%.

Modular surgical operating theaters: 5% from 20%.
Air/vacuum pumps and compressors: 5% from 10%.
Automatic circuit breakers: 10% from 20%.
Lamp holders: 10% from 20%.
Green Tax Exemptions for Eco-Friendly and Local Vehicles

To promote sustainability and domestic production, the policy exempts several vehicle categories from the upcoming green tax:
Vehicles below 2000cc.
Mass transit buses (heading 87.02).
Electric vehicles.
Locally manufactured vehicles (headings 87.06–87.13).

The reforms aim to stimulate industries, ease import burdens, and foster economic recovery amid global pressures.