The Nigeria Customs Service (NCS) has announced a two-year exemption from import duty and Value Added Tax (VAT) on essential raw materials used in pharmaceutical production.
This relief, granted under a presidential executive order, was disclosed on Wednesday in a statement by the NCS National Public Relations Officer, Assistant Comptroller Abdullahi Maiwada.
According to Maiwada, the exemption applies to active pharmaceutical ingredients, excipients, and other crucial raw materials necessary for manufacturing essential medicines.
It also covers long-lasting insecticidal nets, rapid diagnostic kits, reagents, and packaging materials.
He stated, “Drawing from Presidential directives aimed at enhancing local manufacturing of healthcare products, reducing the costs of medical equipment and consumables, as well as stimulating local investments, the Nigeria Customs Service is pleased to announce that President Bola Tinubu, through the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, has approved the comprehensive guidelines to actualise these objectives.
“Consequently, critical raw materials essential for the production of pharmaceutical products will be exempted from import duty and Value Added Tax for a period of two years.
“This exemption covers Active Pharmaceutical Ingredients, excipients, and other vital raw materials required for manufacturing essential medicines, Long-Lasting Insecticidal Nets, Rapid Diagnostic Kits, reagents, and packaging materials.”
The statement further clarified that only manufacturers recognised by the Federal Ministry of Health and Social Welfare would be eligible for this incentive, provided they hold a valid Tax Identification Number.
This measure aims to ensure that the policy benefits legitimate manufacturers working to strengthen Nigeria’s healthcare infrastructure.
To promote transparency, the NCS will compile and publish quarterly reports detailing all importations under this policy.
These reports will include data on importers, quantities, and the values of imported items to ensure compliance with the policy’s objectives.
“In commitment to transparency and effective monitoring, the NCS will compile quarterly reports detailing all importations under this policy, including data on importers, quantities, and values of the imported items, ensuring the policy’s implementation aligns with its intended objectives.
“The Nigeria Customs Service remains committed to supporting government policies while fulfilling its mandate to facilitate trade, enhance border security, and drive national development.
“Successful implementation of this policy requires collaboration from all stakeholders, including importers, manufacturers, and relevant government agencies. Through our collective efforts, we can achieve the shared goal of a robust healthcare sector that meets the needs of all Nigerians,” the statement concluded.
