Mixed reactions yesterday trailed the Federal Government’s approval of the new 2026 fiscal policy which reduced import tariffs on drugs and pharmaceutical products, cars, rice, and other items.
While stakeholders in the pharmaceutical sector welcomed the policy, rice producers and operators in the automobile industry expressed concern, saying the move could hurt local production and business sustainability.
Recall that the Federal Government, in a document dated April 1, 2026, signed by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, approved sweeping tariff adjustments across 127 product lines. Antimalarial medicines were among those affected, now pegged at 20 per cent, as part of efforts to stimulate growth and reduce the cost of critical imports.
Pharma sector welcomes policy, calls for reforms
Pharmaceutical stakeholders described the tariff reduction as a positive step that could improve access to essential medicines, but warned that weak regulation, counterfeit drugs, and poor support for local manufacturing could undermine the gains.
The President of the Pharmaceutical Society of Nigeria (PSN), Ayuba-Tanko Ibrahim, said the move was commendable but required strong supporting reforms.
“A drop in duties on drugs and pharmaceutical products is quite laudable. In normal circumstances, this should signpost a drop in prices and improve accessibility,” he said.
However, he called for stronger regulation of drug distribution and urgent intervention in local manufacturing.
“There is a need to address fake and counterfeit drugs and support local content in Active Pharmaceutical Ingredients (APIs) and vaccine production,” he added.
Former PSN President, Olumide Akintayo, said the policy aligns with the National Drug Policy but questioned implementation effectiveness, noting that past reforms failed due to poor execution.
National Chairman of the Association of Community Pharmacists of Nigeria (ACPN), Ambrose Ezeh, also urged the government to establish a presidential committee to drive reforms in the sector.
Rice farmers, automobile operators express concern
The All Farmers Association of Nigeria (AFAN) described the reduction in import duty on rice as discouraging, warning it could hurt local farmers already struggling with high input costs.
AFAN President, Mohammed Magaji, said the policy may reduce farmers’ motivation to cultivate rice due to unfair competition from cheaper imports.
Similarly, JetFarmsNG warned that the tariff cut could destabilise local rice production and force farmers into losses during harvest seasons.
In the automobile sector, stakeholders expressed mixed views, with concerns that reduced tariffs on imported cars could weaken local assembly plants.
An automobile marketing consultant, Prof. Oscar Odibo, warned that the policy could reverse gains made in local auto assembly and job creation.
He, however, advised the government to focus more on reducing tariffs on spare parts rather than fully built vehicles to support domestic production.
Stakeholders seek clarity and balanced implementation
Other industry players, including organisers of auto exhibitions, called for clarity on whether the tariff changes apply to vehicles, spare parts, or both, stressing the need for a balanced approach that protects local investment while encouraging trade.
They urged the Federal Government to engage more directly with local manufacturers to ensure policies support industrial growth and job creation.
