Mixed reactions have continued to trail the Federal Government’s approval of tariff reductions on selected imports under the 2026 fiscal policy, with stakeholders in the pharmaceutical sector welcoming the move while rice farmers and automobile industry operators warned of potential adverse effects on local production and investment.
The tariff adjustments, approved in a document dated April 1, 2026, and signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, affect 127 product lines, including pharmaceuticals, rice and vehicles. The government said the changes were aimed at stimulating growth and easing the cost of critical imports.
Stakeholders in the pharmaceutical sector described the policy as a step in the right direction that could improve access to essential medicines, but stressed that weak regulation and limited support for local manufacturing could undermine its impact.
President of the Pharmaceutical Society of Nigeria, Ayuba-Tanko Ibrahim, said the reduction in duties on drugs should ordinarily lead to lower prices and improved accessibility to healthcare products. He, however, urged the Federal Government to strengthen regulatory oversight and address persistent challenges such as counterfeit medicines and unregistered pharmaceutical outlets.
Ibrahim also called for stronger support for local production of Active Pharmaceutical Ingredients and vaccines, as well as the implementation of the National Drug Distribution Guidelines to improve supply chain efficiency across the sector.
Similarly, former PSN President, Olumide Akintayo, said the tariff cut aligned with the National Drug Policy 2021 but questioned why previous interventions aimed at reducing drug prices had produced limited results. He attributed the situation largely to poor implementation and inadequate technical coordination.
National Chairman of the Association of Community Pharmacists of Nigeria, Ambrose Ezeh, also urged the Federal Government to adopt a more coordinated strategy, including the possible establishment of a presidential committee led by professionals in the pharmaceutical sector to address structural challenges affecting drug affordability.
In contrast, rice producers expressed concern that the reduction in import duty on rice could discourage local production. President of the All Farmers Association of Nigeria, Mohammed Magaji, warned that cheaper imports could reduce market opportunities for local farmers already grappling with rising input costs such as fertilisers and agrochemicals.
Similarly, Chief Farmer of Africa and Team Lead of JetFarmsNG, Jeremiah Olanrenwaju, described the policy as a setback for rice farmers, noting that the reduction of import duty on bulk rice from 70 per cent to 47.5 per cent and broken rice to 30 per cent could make imported rice significantly cheaper and place additional pressure on local producers.
Stakeholders in the automobile sector also raised concerns about the implications of the tariff cuts on locally assembled vehicles. Marketing communications consultant and Professor of Marketology, Advertising and Public Relations, Oscar Odibo, warned that the policy could undermine investments already made in local assembly plants and threaten employment opportunities.
Odibo suggested that government support should instead focus on reducing tariffs on auto spare parts rather than fully built vehicles to strengthen domestic assembly operations. Similarly, Managing Director of BKG Exhibitions, organisers of the Lagos and Abuja International Auto Shows, Ifeanyi Agwu, called for clarity on whether tariff adjustments also covered imported vehicle components, stressing the need to protect local assembly investments.