Nigeria: Mixed feelings as gov’t cuts import duties on drugs, others
By Zuleihat Owuiye, Mamos Nigeria
The Federal Government’s latest decision to reduce import duties on a wide range of goods — including medicines, rice, and vehicles — has sparked strong reactions across different sectors of the economy.
Announced as part of the 2026 fiscal policy, the move is aimed at easing the cost of essential imports and stimulating economic activity. But while some see it as a step in the right direction, others fear it could hurt local industries.
In the healthcare space, pharmacists have largely welcomed the development. They believe lowering tariffs on pharmaceutical products could make essential medicines more affordable and accessible to Nigerians. However, they were quick to point out that reducing prices alone won’t fix deeper issues in the sector.
Industry experts stressed that weak regulation, the spread of counterfeit drugs, and limited support for local manufacturing remain major concerns. They called on the government to go beyond tariff cuts by strengthening oversight, enforcing drug standards, and investing in local production of medicines and raw materials.
There were also renewed calls for the creation of a presidential committee made up of professionals to drive reforms in the pharmaceutical sector. According to stakeholders, past efforts failed largely because they were not led by experts with the right technical knowledge.
While the health sector expressed cautious optimism, the mood was very different among rice farmers. Many described the reduction in import duties as a major setback, warning that it could flood the market with cheaper imported rice and push local farmers out of business.
Farmers say they are already struggling with rising costs of fertilisers, chemicals, and transportation. With cheaper imports entering the market, they fear they may be forced to sell their produce at a loss, discouraging further investment in farming. Some urged the government to rethink the policy and instead focus on supporting local food production to ensure long-term food security.
The automobile sector also reacted with mixed emotions. While some operators see an opportunity to import vehicles at lower costs, others worry about the impact on local assembly plants.
Experts warned that reducing tariffs on fully built cars could undermine investments in Nigeria’s local auto industry, potentially leading to job losses and slowing down progress made so far.
They advised the government to instead focus on lowering duties on spare parts, which would support local assemblers and encourage industrial growth.
There are also concerns about policy consistency, with stakeholders pointing out that sudden changes can make it difficult for investors to plan and grow their businesses.
Overall, while the government’s decision is intended to bring relief to consumers, it has opened up a broader debate about balancing affordability with the need to protect and grow local industries.
