ABUJA — Mixed reactions have greeted the Federal Government’s decision to reduce import duties on pharmaceutical products, rice, vehicles and other items under its 2026 fiscal policy, with stakeholders sharply divided over the impact on key sectors of the economy.

The policy, approved by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, involves tariff adjustments across 127 product lines, including a 20 per cent duty on antimalarial drugs, aimed at easing the cost of essential imports and stimulating economic growth.

Players in the pharmaceutical sector welcomed the move, saying it could improve access to medicines, but warned that weak regulation and poor support for local manufacturing could undermine its benefits. President of the Pharmaceutical Society of Nigeria, Ayuba-Tanko Ibrahim, described the policy as laudable but stressed that complementary reforms were needed to ensure affordability and quality.

He called for stronger regulation to tackle counterfeit drugs and urged government to support local production of Active Pharmaceutical Ingredients and vaccines. Ibrahim also advocated the establishment of a presidential committee led by professionals to address structural challenges in the sector.

Similarly, former PSN president, Olumide Akintayo, said the policy aligned with the National Drug Policy but questioned why previous interventions had failed, blaming poor implementation and lack of technical expertise. National Chairman of the Association of Community Pharmacists of Nigeria, Ambrose Ezeh, also urged a shift in strategy, insisting that only professionals should drive reforms in the sector.

Despite the optimism in the health sector, rice farmers expressed strong opposition to the tariff cuts, warning that cheaper imports could hurt local production. President of the All Farmers Association of Nigeria, Mohammed Magaji, said the policy would discourage farmers due to falling prices and rising input costs, and appealed to the government to reconsider the decision.

Echoing similar concerns, agriculture stakeholders said the reduction in rice import duties would create an uneven playing field, forcing local producers to sell at a loss and potentially reducing future investment in farming. They warned that the development could undermine national food security if not properly managed.

In the automobile sector, reactions were also mixed, as experts raised concerns about the survival of local assembly plants. Industry analyst, Professor Oscar Odibo, noted that while the tariff reduction could benefit importers, it might reverse gains made in local vehicle assembly and threaten jobs.

He advised the government to prioritise reduced tariffs on spare parts rather than fully built vehicles to support domestic manufacturing. Similarly, Managing Director of BKG Exhibitions, Ifeanyi Agwu, questioned whether adequate measures had been put in place to protect local assemblers, stressing the need for clarity on the scope of the tariff adjustments.

Overall, stakeholders agreed that while the policy may lower costs for consumers in the short term, its long-term impact on local industries will depend on complementary measures to support production, strengthen regulation and ensure a balanced economic outcome.