Korede Abdullah in Lagos
The Nigeria Customs Service (NCS) has announced a two-year exemption of import duties and Value Added Tax (VAT) on raw materials essential for producing healthcare products.
This decision aligns with President Bola Tinubu’s Executive Order, aimed at reducing costs and enhancing access to essential medicines and medical supplies.
On Thursday, Customs Spokesman Abdullahi Maiwada confirmed the move, stating, “The Nigeria Customs Service (NCS) is pleased to announce that President Bola Ahmed Tinubu, through the Honourable Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, has approved the comprehensive guidelines to actualise these objectives.”
The exemption applies specifically to Active Pharmaceutical Ingredients (APIs), excipients, reagents, packaging materials, and other key raw materials used in manufacturing essential medicines, Long-Lasting Insecticidal Nets (LLINs), and Rapid Diagnostic Kits.
Maiwada emphasized that only manufacturers recognized by the Federal Ministry of Health and Social Welfare and possessing a valid Tax Identification Number (TIN), would be eligible for this benefit.
“To ensure that these fiscal incentives are fully utilised, eligibility is limited to manufacturers of pharmaceutical products recognised by the Federal Ministry of Health and Social Welfare,” the statement read.
To maintain transparency, the NCS has committed to quarterly reports tracking all importations under this policy.
These reports will include details of importers, quantities, and values of imported materials to ensure that the initiative serves its intended purpose.
“This measure ensures that the benefits directly support legitimate manufacturers committed to strengthening Nigeria’s healthcare infrastructure,” the NCS stated, reinforcing the government’s effort to boost local pharmaceutical production and improve public health outcomes.
