April Policy Trend Trail

INTRODUCTION

The month of April 2026 reflects a more deliberate and problem-solving approach to public policy in Nigeria. The policies introduced during the month reflect a government that is not only seeking to regulate and restrict but also correct systemic gaps and strengthen everyday economic realities for its citizens. Some of the notable policies in the month of April include tightening importation standards, improving financial market transparency and strengthening consumer protection in the insurance and telecommunications sector. The central goal is to build a system that works better for both individuals and the broader economy.

These policies respond to real and everyday challenges such as low-quality imports, overreliance on importation, confidence in financial systems and uncertainty around insurance claims, especially around policyholder protection. At the same time, these policies show a concerted effort to align Nigeria with global best practices, particularly in financial benchmarking and risk protection, whilst addressing local economic needs such as revenue generation and encouraging domestic production.

In this month’s policy trend trail, we examine these reforms in practical terms; what they mean, the problems they are trying to solve and how they affect Nigerians, businesses and investors. More importantly, we consider how citizens and market participants should respond and where there is room for improvement to ensure that the policies achieve their intended outcomes without creating new barriers.

Policies

The 2026 Fiscal Policy Measures And Tariff Amendments To Drive Local Production And Economic Self Reliance

Import Prohibition List Expansion

The Federal Government, through the Ministry of Finance, expanded the Import Prohibition List as part of its 2026 fiscal policy measures. The import prohibition list consists of 17 items originating from non-Economic Community of West African States (ECOWAS) member states and forms part of broader trade protection reforms.

This policy which took effect from 1^st April, 2026, is aimed at addressing Nigeria’s dependence on imports by protecting local industries and encouraging domestic production. The government aims to restrict the importation of items that can be produced locally to encourage industrial growth, support local manufacturers and conserve foreign exchange.

The scope of the ban is extensive, covering agricultural goods like live or dead birds including frozen poultry, meat products, eggs (excepts those meant for breeding and research), tomatoes (fresh or processed into pastes and concentrates), refined vegetable oils (excluding specific categories like refined linseed, castor, olive oil, hydrogenated vegetable fats and crude vegetable oil), cane or beet sugar and chemically pure sucrose in solid form containing added flavouring or colouring, cocoa butter, cocoa cakes and powder, mineral and aerated drinks and non-alcoholic beverages, mineral and chemical fertilisers containing nitrogen, phosphorus and potassium, industrial goods such as bagged cement, steel products like flat-rolled iron or non-alloy steel product, and everyday consumer and packaging items including detergents, soaps, corrugated paper, paperboards and cartons, hollow glass bottles exceeding 150 milliliters, such as bottles and flasks and ball point rolling pens, refills and their parts and in addition, pharmaceuticals across various classifications.

Import Adjustment Tax

In a notable contrast, an import adjustment tax was introduced on 192 tariff lines. The objective is to stimulate economic activities by reducing import tariffs and making it cheaper to bring in certain goods across key sectors that citizens and import-dependent businesses rely on.

One of the most notable changes is in the automotive sector, where tariffs on fully built passenger vehicles, including SUVs and station wagons, have been reduced significantly from 70% to 40%. This represents a major policy shift and is likely to lower the cost of vehicle importation, potentially increasing supply in the market. At the same time, this could put pressure on local assembly plants because imported cars become more competitive.

Similarly, there have been tariff reductions on some food products, consumer goods and pharmaceutical products. For instance, tariff on rice (above 5kg packaging) dropped from 70% to 47.5%, broken rice to 30% and crude palm oil to 28.75%. Wheat or meslin flour-70%, margarine-40%, raw cane sugar (various categories)-55%–57.5%, refined salt-55%, anti-malarial drugs- 20%, envelopes-40%, diaries and notebooks-30%. These adjustments suggest an attempt to ease pressure on the fast-rising food prices, even though other factors such as foreign exchange constraints and logistics cost continue to influence final market costs.

In the industrial and manufacturing industry, the reforms are particularly significant. Tariffs on steel products such as zinc-coated steel sheets, steel coils (aluminium coated), steel rods and bars, ceramic tiles and electroplated steel have been reduced from 45% to 35%, cold-rolled steel-15%, while duties on electrical apparatus (fuses, etc) have dropped from 20% to 10%.

Importantly, certain categories of machinery, including agricultural and manufacturing equipment, railway locomotives (SKD/CKD) and cargo ships above 500 tonnes now attract zero duty, down from 5%. Medical and industrial equipment have also been reduced to between 0% and 10% depending on category. This means businesses can import equipment more cheaply, so factories become cheaper to set up or expand, construction costs may reduce and infrastructure projects become more viable. These reforms are clearly a push to encourage production and not just importation.

From January 2027, the adjustment taxes shall be gradually reduced on an annual basis until it is fully eliminated to 0% by 2036. This however does not apply to products on the African Continental Free Trade Area (AfCFTA) ‘3% list’ (Exclusion List).

The policy also introduces transitional and forward-looking measures that are important for businesses. A 90-days grace period has been granted to importers, service providers and manufacturers who already opened Form M before April 1, 2026, allowing them to process and clear goods at the previous excise duty rates. By necessary implication, all other importation transactions after the effective date are to be made subject to the policy.

Businesses with goods already in transit or pending clearance should immediately assess eligibility to benefit from the 90-day window to avoid additional costs. Also, companies should actively revisit and restructure their import plans and supply chains to take advantage of the reduced tariff regime, identifying where cost savings can be maximised. Existing commercial arrangements, particularly import, procurement, pricing and long-term supply contracts should be revised and where necessary, renegotiated to reflect the new tariff realities and prevent exposure to avoidable losses. Importantly, businesses should begin early preparation for the upcoming excise duty regime by putting in place proper systems while also leveraging the policy changes to improve efficiency, competitiveness and cost optimisation across their operations.

In line with the Nigeria First Policy objectives, the framework ushers a shift toward import substitution and self-sufficiency, with the expectation that domestic industries will expand production, create jobs and reduce pressure on Nigeria’s foreign reserves. Manufacturers now have the opportunity to improve and maximise their operations to meet the local demand previously met by imports. This also creates foreign investment opportunities for investors to partake in the growing economy.

For consumers, reduced importation options could lead to higher prices or supply constraints, especially where local production is not sufficient to meet demand. The success of the policy will therefore depend on how quickly domestic industries can manage the immediate economic effects of the ban and respond in terms of quality, quantity and affordability of the specified locally produced goods.

NATIONAL INSURANCE COMMISSION (NAICOM) POLICYHOLDERS PROTECTION FUND AND THE PUSH TO STRENGTHEN INSURANCE CONFIDENCE

Following the enactment of the Nigerian Insurance Industry Reform Act (NIIRA), 2025 which introduced the Insurance Policyholders Protection Fund (IPPF), NAICOM has introduced guidelines regulating the collection, management and administration of the IPPF.

The IPPF is a safety measure introduced under NIIRA and administered by NAICOM to protect insurance customers in the event of an insurer’s insolvency, bankruptcy or liquidation. The policy mandates all licensed insurance companies to contribute 0.25% of their premium income to the fund, with strict compliance requirements and licence revocation penalty for defaulters. NAICOM has also established a transparency and accountability structure by stating an intention to appoint an independent fund manager who is registered with the Securities and Exchange Commission (SEC) to manage and invest the fund in government-backed instruments.

The fund serves as a financial backup, ensuring that policyholders can recover claims or benefits even if an insurance company becomes unable to meet its obligations. The issued guidelines provide that the IPPF will be given to insurance companies as loans and that insurance companies have a responsibility to pay all the affected policyholders within 10 days of receiving the loans. Doing this addresses a long-standing weakness in Nigeria’s insurance sector, where low public trust has often been driven by delayed or unpaid claims and the collapse of undercapitalised firms.

It also introduces a risk-sharing and consumer protection framework that aligns Nigeria with global insurance standards. By pooling contributions across the industry, the fund spreads risk and reduces the burden on individual firms, while strengthening regulatory oversight and accountability.

The policy offers consumers increased confidence that their insurance is backed by a system that protects their interests. This could encourage higher uptake of insurance products in a market where penetration has historically remained low.

From an economic perspective, while the mandatory contributions may increase operational costs for insurers, which could be passed on to customers through higher premiums, the IPPF is a major step in rebuilding trust, stability and risk management in Nigeria’s insurance industry, with its success dependent on effective enforcement, transparency and sustained regulatory discipline.

MANDATORY VEHICLE CONFORMITY ASSESSMENT PROGRAMME (VEHCAP) POLICY FOR VEHICLE IMPORTATION

The Federal Government introduced a policy through the Standards Organisation of Nigeria’s National Automotive Design and Development Council Vehicle Conformity Assessment Programme. This policy requires that all imported vehicles must undergo mandatory pre-shipment inspection and certification before entry into Nigeria, effectively establishing a “no certification, no entry” regime. The policy, implemented through the Nigeria Customs Service (NCS), Central Bank of Nigeria (CBN), the Federal Road Safety Corps (FRSC) and other relevant trade agencies, is aimed at tightening controls around vehicle importation to address persistent revenue leakages linked to under-declaration, undervaluation, curb the importation and use of substandard and accidented vehicles on Nigerian roads and improve standards in the automobile industry.

This policy requires exporters and importers to obtain verified documentation confirming the true value, condition and specifications of vehicles prior to shipment. It also places a duty on NCS to restrict the clearance of vehicles without certification and the CBN not to honour any foreign exchange transaction that does not have the required certificate. This seeks to eliminate the age-long practice where importers declare lower values to reduce customs duties, a loophole that has significantly affected government revenue and distorted market pricing. Also, it addresses the issue of importing low-quality vehicles which contributes to the rate of mortality associated with road accidents. With this policy, vehicles are properly assessed before their arrival which strengthens customs valuation processes and enhances compliance.

The benefits of this policy are increased revenue generation, improved data accuracy, a more regulated automotive import market and standardised quality control on imported vehicles.

While the benefits and rationale behind the policy are noble, the practical realities within Nigeria must be acknowledged. A significant number of Nigerians cannot afford brand new vehicles and are therefore compelled to rely on fairly used or accidented vehicles, often refurbished after importation as a more affordable alternative.

In addition, this policy introduces new layers of compliance that may affect efficiency. Importers now face additional documentation requirements, certification processes and associated costs. This is likely to increase the overall cost of imported vehicles and may push previously affordable options, particularly accident-damaged vehicles beyond the reach of average consumers. For many car dealers who rely on importing such vehicles from international auctions, these requirements could slow down trade and disrupt existing business models.

Furthermore, while the policy addresses the problem of undervaluation, it also raises concerns regarding corruption, bureaucratic bottlenecks and administrative burden, especially at a time when global trade is increasingly moving toward digitalisation and streamlined processes. Excessive paperwork, delays and additional fees could inadvertently create inefficiencies or encourage informal workarounds.

Accordingly, while this is an important and commendable reform, the government must balance its revenue generation and standardisation objectives with the need to promote the ease of doing business. It is critical to recognise that many Nigerians resort to lower-cost vehicles due to financial constraints, and eliminating this option without providing viable alternatives may not achieve the intended policy outcomes.

A more pragmatic approach would include the development of a centralised, transparent vehicle database aligned with global standards to track and verify the history and condition of vehicles entering Nigeria. This system would ensure that truly substandard vehicles are rejected, while those that do not meet certification requirements but still enter the country are identified and appropriately impounded.

In addition, the certification framework should adopt a tiered classification system for damaged vehicles, where cars with minor to moderate damage may be certified subject to safety compliance, while severely damaged vehicles are outrightly prohibited. This would introduce a more balanced regulatory approach that protects public safety without completely excluding lower-income consumers from vehicle ownership.

Finally, there is a need for public awareness and consumer education, particularly on how to properly inspect, verify and import good road worthy vehicles. Empowering Nigerians with the right information will not only improve compliance but also enhance safety outcomes across the automotive sector.

INTRODUCTION OF THE NIGERIAN OVERNIGHT FINANCING RATE (NOFR)

The Central Bank of Nigeria in collaboration with the Financial Markets Dealers Association rolled out the Nigerian Overnight Financing Rate (NOFR) as a new benchmark for Nigeria’s money market. This development is very significant to promote transparency and credibility in Nigeria’s financial system by establishing a locally determined reference rate for short-term lending.

The NOFR is developed to reflect the actual cost of interest on overnight loans between financial institutions. This will be done by providing a reliable and data-driven benchmark of pricing for financial instruments. Unlike the previous reliance on less standardised or externally influenced rates, this framework ensures that Nigeria’s short-term interest rate environment is anchored on domestic market realities. It aligns the country with global best practices, similar to benchmarks such as SOFR in the United States, SONIA in the United Kingdom among others, whilst responding to Nigeria’s specific financial market structure.

It is worth noting that the NOFR does not replace the Monetary Policy Rate (MPR), rather, it complements it by improving how monetary policy decisions are transmitted across the financial system by enhancing price discovery and consistency in interest rate formation, all of which culminates into an improved transparency system, strengthened investor confidence, heightened support in risk management and enhanced efficiency of financial intermediation.

The economic implications include more transparent and predictable interest rates, which lead to better pricing of loans, improved access to credit and a more stable financial environment for businesses and investors. The NOFR positions Nigeria toward a more resilient and globally aligned financial system, where monetary policy is clearer, market-driven and more effective.

CBN UNVEILS 2026 REVISED GUIDE TO BANK CHARGES

CBN unveiled the 2026 revised Guide to Charges for Banks and other Financial Institutions, effective 1^st day of May, 2026. This guide introduces structured caps on transaction fees, eliminates charges for several essential services and mandates stricter disclosure requirements to protect consumers from hidden costs and improve transparency.

For the average Nigerian, this policy shift translates to direct savings on daily financial activities. Most notably, electronic funds transfers and interbank transactions below N5,000.00 are now free of charge, while transactions up to N50,000.00 are strictly capped at N10.00 with a maximum of ₦50.00 for transactions above N50,000.00.

Also, consumers will no longer be billed for reactivating dormant accounts, closing accounts, or receiving monthly electronic statements. Email alert notifications are free, while SMS alerts may only be charged on a cost-recovery basis.

Similarly, ATM withdrawal charges have been standardised. Withdrawals from a customer’s own bank ATM and PIN-related services (re-issuance/resets) attract no fees. Customers withdrawing from another bank’s ATM are to pay N100.00 per N20,000.00 at on-site machines, while off-site withdrawals attract an additional surcharge of up to N500.00 which must be disclosed at the point of transaction. Additionally, while the cost of issuing or replacing physical debit and credit cards has increased to N1,500.00 from the previous N1,000.00, the CBN has balanced this by removing monthly maintenance fees for naira-denominated cards. Furthermore, current account maintenance fees are set to be eliminated by 2027.

In addition, the revised guide tightens disclosure rules to prevent hidden costs, especially for borrowers and small business owners (MSMEs). The CBN now mandates that all interests and lending rates, inclusive of all applicable fees, be quoted and communicated to customers on an Annual Percentage Rate (APR), ensuring customers understand the total cost of credit and preventing non-disclosure of hidden charges. Banks are also required to explicitly inform customers of their right to negotiate fees where applicable and notify them in advance of any changes to agreed lending rates, while maintaining that rates remain negotiable but should reflect risk-based pricing anchored on the monetary policy rate and regulatory limits.

For merchants and SMEs, merchant service charges are capped at 0.5% per transaction, a move intended to lower the cost of doing business and encourage the adoption of digital payments over cash.

CBN also retained limits on certain account service charges and reinforced consumer protection measures, while placing responsibility on financial institutions’ management to ensure strict compliance with the new framework. CBN noted that the guide is not exhaustive and that any new product, service or charge not covered must receive prior approval before being introduced. It added that the provisions should be read alongside its consumer protection regulations and guidance notes to ensure full compliance.

The revised guide which replaces the 2020 framework is designed to lower transaction costs for SMEs, encourage the adoption of digital financial services, improve transparency and strengthen trust in the banking system.

EXPANSION OF FCCPC DIGITAL LENDING REGULATIONS TO TELECOM-BASED CREDIT SERVICES

Nigeria’s digital lending regulatory landscape witnessed a significant shift following the implementation of the Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations) by the Federal Competition and Consumer Protection Commission (FCCPC). Initially targeted at fintech lending platforms, the regulatory framework was expanded to cover telecom-based credit offerings, including airtime and data advances.

Under this framework, airtime and data credit services provided by major telecom operators such as MTN Nigeria and Airtel Nigeria are now formally classified as digital lending products. This reclassification subjects telecom operators to strict regulatory obligations, including mandatory registration and approval by the FCCPC, full disclosure of lending terms, compliance with data protection standards under the Nigeria Data Protection Act 2023 and adherence to fair debt recovery practices.

In response to the regulatory requirements and looming compliance deadlines (i,e. January 2026, extended to April 2026), MTN and Airtel temporarily suspended their airtime and data advance services. This suspension has immediate implications for millions of prepaid subscribers who rely on these micro-credit services as financial buffers for day-to-day communication needs, particularly in low-income and rural communities.

The FCCPC clarified, however, that it did not ban airtime or data lending services. Rather, the Commission emphasised that any service disruptions were the result of operators’ internal compliance decisions. It added that the regulation was driven by rising consumer complaints relating to opaque pricing, hidden charges, aggressive recovery tactics and misuse of personal data within the digital lending ecosystem.

The regulations introduce far-reaching compliance obligations, including:

1. Mandatory licensing and registration for all digital lenders;
2. Transparent disclosure of interest rates, fees and repayment terms;
3. Prohibition of unfair contract terms and unethical recovery practices,
4. Strict data privacy limitations (including restrictions on accessing contacts and call logs);
5. Complaint resolution timelines (24–48 hours);
6. Periodic reporting and regulatory oversight; and
7. Penalties of up to ₦100 million or 1% of annual turnover for non-compliance and revocation of business license.

This development represents a structural shift in Nigeria’s telecom and financial services convergence. It reinforces FCCPC’s authority over digital credit markets while signalling a move toward a more consumer-protection-driven regulatory environment. In the short term, while consumers may experience inconvenience and increased reliance on alternative recharge channels, the framework is expected to standardise lending practices, reduce exploitative behaviour and strengthen trust in digital financial services in the long term.

Interestingly, the Federal High Court in Abuja has temporarily ordered telecommunications companies to restore airtime borrowing services and not to block or limit mobile operators and other Value Added Service (VAS) providers from using their platforms.

This interim order was granted after Nairtime Nigeria Ltd (Nairtime) filed a case against MTN Nigeria Communications Plc and Airtel Networks Ltd. The court stated that the suspension of services such as airtime lending based on the DEON Regulations was not justified.

The court noted that Nairtime holds a valid licence from the Nigerian Communications Commission (NCC), which regulates the telecommunications sector. The court also stated that Nairtime met all its contractual obligations and has not violated any agreement with the telecommunications operators.

The court emphasised that Value Added Service (VAS) providers operating under a valid NCC licences retain the right to access telecom networks and that telecommunications operators cannot deny such access solely on the basis of FCCPC’s DEON Regulations. This reinforces the principle that sector-specific licences and regulatory authority must be respected and that overlapping regulatory actions should not undermine legally granted operational rights.

The court’s ruling highlights an ongoing tension between consumer protection objectives and regulatory coordination. Although, the DEON Regulations framework seeks to address consumer fairness and transparency in digital services, the court’s intervention underscores the need for clearer alignment between regulatory bodies to avoid conflicting directives as well as potential overreach.

NIGERIAN COMMUNICATIONS COMMISSION (NCC) DIRECTIVE ON MANDATORY SERVICE COMPENSATION FOR TELECOM SUBSCRIBERS

In a parallel regulatory development, NCC introduced a consumer-centric enforcement measure requiring telecom operators to compensate subscribers for poor network performance.

Following verified failures to meet minimum Quality of Service (QoS) standards across parts of the country, the NCC directed telecommunication operators to issue airtime compensation to affected users for service disruptions recorded between November 2025 and January 2026. This directive marks a notable shift from the traditional “service assurance” model to a more enforceable consumer compensation regime.

Unlike previous approaches where operators merely acknowledged service failures, this policy now imposes a financial consequence for service failure. Compensation is mandatory, subject to independent verification and non-compliance may attract regulatory sanctions. Subscribers are also to be notified of the nature and value of compensation received, enhancing transparency.

This policy effectively reframes poor network service from a technical issue into a financial and regulatory liability for operators. As a result, telecom companies are now incentivised to prioritise capital expenditure on infrastructure, improve network quality and enhance service delivery to avoid recurring compensation obligations.

This marks a critical evolution in telecom regulation in Nigeria, promoting accountability, measurable service standards and enforceable consumer rights. It is also expected to drive increased investment in network infrastructure, improve overall service quality and rebuild consumer trust in the sector.

CONCLUSION

Overall, the April 2026 policy landscape reflects a clear shift toward stronger regulation, improved consumer protection and greater economic efficiency across key sectors. The reforms demonstrate a balance between restricting harmful practices and enabling growth, particularly in trade, finance, insurance and telecommunications.

While these policies introduce short-term adjustment pressures for businesses and consumers, they collectively aim to build long-term stability, transparency, and trust in Nigeria’s economic systems. Their success will depend largely on effective implementation, regulatory coordination and the responsiveness of market participants.

Finally, sustained stakeholder engagement and careful monitoring will be essential to ensure that these reforms achieve their intended outcomes without creating unintended barriers to access, affordability and ease of doing business.