The Nigeria Customs Service (NCS) has begun enforcing a two-year exemption on import duty and Value Added Tax (VAT) for key pharmaceutical raw materials. The initiative, approved by President Bola Tinubu, aims to boost local pharmaceutical manufacturing and lower healthcare costs.
Scope of the Tax Exemption
According to a statement released on Wednesday by NCS National Public Relations Officer, Abdullahi Maiwada, the exemption applies to Active Pharmaceutical Ingredients (APIs), excipients, and other essential materials used in medicine production. It also covers raw materials for Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, reagents, and packaging supplies.
This move aligns with the government’s broader strategy to enhance local healthcare manufacturing, reduce production costs, and attract investments. The policy was approved through the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
Monitoring and Implementation
To ensure transparency and effective oversight, the NCS will compile quarterly reports documenting all imports under this policy. These reports will include details on importers, quantities, and the value of imported goods to track compliance and assess the policy’s impact.
“The Nigeria Customs Service remains committed to supporting government policies while fulfilling its mandate to facilitate trade, enhance border security, and drive national development,” the statement read.
Stakeholder Collaboration
The successful execution of this policy will require cooperation between importers, manufacturers, and relevant government agencies. By reducing the cost of importing pharmaceutical inputs, the initiative is expected to strengthen Nigeria’s healthcare sector, encourage local production, and improve access to affordable medicines.
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