By Peter Effiom
The federal government has authorized the implementation of new fiscal reforms, including significant adjustments to import taxes, under the 2026 Fiscal Policy Measures (FPM). The new policies, which go into effect on April 1, 2026, are intended to boost growth in several important economic sectors.
In accordance with the ECOWAS Common External Tariff (CET) 2022–2027, the government policy implements Supplementary Protection Measures (SPM).
One of its main features is the policy’s evaluation of import taxes over 127 tariff lines, which cover a large range of goods.
Along with a Green Tax Surcharge that is anticipated to go into effect on July 1, 2026, the government has approved increased excise taxes on alcoholic beverages (beer, wine, spirits), non-alcoholic drinks, and tobacco products.
In addition to a “sugar tax” on sweetened beverages, the policy includes higher specified prices per cigarette stick and per litre of beer.
It follows that Nigerians will pay more for tobacco, sugary drinks, and both alcoholic and non-alcoholic beverages.
The goal of the strategy, which is connected to World Bank reforms, is to increase government revenue and lessen dependency on oil revenue. Reducing alcohol consumption and smoking is also motivated by public health concerns.
The policy’s objectives for non-alcoholic beverages are to increase the revenue base and decrease sugar consumption.
While the government’s non-oil revenue is anticipated to rise, consumers’ purchasing power will be diminished by the higher costs, particularly for low-income workers.
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