The Federal Government has announced a major fiscal policy shift removing import duties on electric vehicles, mass transit buses, and industrial machinery. The decision is aimed at reducing import costs, supporting economic growth, and encouraging investment in key productive sectors of the economy.
The policy applies to three major categories: electric vehicles (EVs), public transport buses used for mass transit systems, and a wide range of industrial machinery. By eliminating import duties on these items, the government intends to make them more affordable for businesses, transport operators, and industrial players.
The announcement was made by the Minister of Finance and Coordinating Economy, Mr Wale Edun, who explained that the waiver is part of ongoing economic reforms designed to stimulate growth and improve efficiency across critical sectors. He noted that the measure is intended to support both private and public sector efforts in modernising infrastructure and adopting cleaner technologies.
According to the policy direction, the removal of import duties on electric vehicles is expected to accelerate the adoption of cleaner and more sustainable transportation alternatives. This aligns with global trends toward reducing carbon emissions and promoting environmentally friendly mobility solutions.
In addition, the waiver on mass transit buses is expected to strengthen public transportation systems across the country. It is anticipated that lower acquisition costs will encourage operators and state governments to expand bus fleets, thereby improving mobility, reducing congestion, and lowering transportation costs for commuters.
The inclusion of industrial machinery in the waiver is also seen as a strategic move to boost productivity in sectors such as manufacturing, agriculture, construction, and processing industries. Access to more affordable machinery is expected to help businesses modernise operations, improve efficiency, and increase output.
The government stated that the policy is part of a broader effort to reposition the economy through targeted tariff adjustments. These adjustments are designed to balance revenue considerations with the need to stimulate investment and industrial growth in critical areas.
Stakeholders in the transport and manufacturing sectors have welcomed the development, describing it as a positive step toward reducing operational costs and improving competitiveness. They also believe the policy could encourage greater private sector participation in infrastructure development and clean energy transport solutions.
Economic analysts suggest that the waiver could have a multiplier effect, potentially creating jobs, improving supply chains, and boosting local production capacity over time. However, they also note that effective implementation will be key to ensuring that the intended benefits are fully realised.
Overall, the policy reflects the government’s commitment to supporting sustainable transportation, strengthening industrial capacity, and encouraging long-term economic transformation through strategic import reforms.
