The Nigeria Customs Service (NCS) has announced a two-year exemption from import duty and Value Added Tax (VAT) on critical raw materials needed for pharmaceutical production.
The exemption, granted under a presidential executive order, was revealed on Wednesday in a statement by the NCS National Public Relations Officer, Assistant Comptroller Abdullahi Maiwada.
Maiwada explained that the exemption applies to active pharmaceutical ingredients and other essential materials used in producing medicines, long-lasting insecticidal nets, rapid diagnostic kits, reagents, and packaging materials.
“Drawing from Presidential directives aimed at enhancing local manufacturing of healthcare products”
The statement highlighted that the policy is part of efforts to boost local production of healthcare products, lower the cost of medical supplies, and attract local investment.
It added, “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.”
Maiwada stated that the incentive is available only to pharmaceutical manufacturers recognised by the Federal Ministry of Health and Social Welfare, provided they have a valid Tax Identification Number.
This ensures that only legitimate manufacturers benefit, reinforcing Nigeria’s healthcare infrastructure.
“In commitment to transparency and effective monitoring”
The statement also emphasised that to ensure accountability, the NCS will prepare quarterly reports listing all importations under this policy. These reports will include details on importers, the quantities, and the value of the imported materials to ensure compliance with policy objectives.
It further affirmed that the NCS remains dedicated to supporting government initiatives while maintaining its role in trade facilitation, border security, and national development.
The statement concluded, “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.”
