The Nigeria Customs Service (NCS) has introduced a new policy following a presidential executive order that offers a two-year exemption from import duty and value-added tax (VAT) on essential raw materials used in local pharmaceutical manufacturing.
This policy, which was approved by President Bola Ahmed Tinubu and implemented by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, applies to critical materials like active pharmaceutical ingredients (APIs), excipients, reagents, packaging materials, and other key resources needed to produce vital medical items, including basic medicines, long-lasting insecticidal nets (LLINs), and rapid diagnostic kits.
Comptroller-General of Customs, Bashir Adeniyi, explained that this initiative is designed to stimulate local investment, make medical products more affordable, and support the growth of Nigeria’s healthcare sector. The goal is to reduce the cost of essential medical supplies and boost local production of healthcare products.
To ensure the policy benefits those it’s intended for, Adeniyi emphasized that only registered pharmaceutical manufacturers, recognized by the Federal Ministry of Health and Social Welfare, will be eligible for the exemption. These manufacturers must also have a valid tax identification number (TIN). Additionally, the NCS will monitor the program closely, providing quarterly reports on all imports under the policy, which will include details about the importers, quantities, and values of the materials to ensure transparency.
Adeniyi also expressed the NCS’s ongoing commitment to supporting government policies and contributing to national development by facilitating trade, enhancing border security, and fostering the growth of a robust healthcare sector. He called on key stakeholders, including manufacturers, importers, and relevant government agencies, to work together to ensure the successful implementation of this initiative. By leveraging these collaborative efforts, Nigeria hopes to strengthen its healthcare infrastructure and make locally produced medical products more accessible to its citizens.
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