The Nigeria Customs Service (NCS) has commenced the implementation of a two-year exemption on import duty and Value Added Tax (VAT) for critical pharmaceutical raw materials.
This development was disclosed in an official statement issued on Wednesday by the NCS National Public Relations Officer, Abdullahi Maiwada, who also serves as an Assistant Comptroller of Customs.
According to Maiwada, the policy is a direct outcome of President Bola Tinubu’s approval of new guidelines aimed at supporting local pharmaceutical production and reducing healthcare costs in Nigeria. The initiative is expected to boost domestic manufacturing capacity, lower production expenses, and attract new investments into the pharmaceutical sector.
Scope of the Tax Exemption
The statement detailed that the tax relief applies to the importation of Active Pharmaceutical Ingredients (APIs), excipients, and other essential raw materials used in the production of various medical and healthcare products. These include:
- Essential medicines
- Long-Lasting Insecticidal Nets (LLINs)
- Rapid Diagnostic Kits
- Reagents
- Pharmaceutical packaging materials
This policy aligns with presidential directives to strengthen the local pharmaceutical industry and improve access to essential healthcare products. The guidelines for this initiative were officially approved by President Tinubu, working through the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
Implementation and Transparency Measures
The Nigeria Customs Service has pledged to ensure transparency and accountability in the execution of this policy. To achieve this, the agency will compile and publish quarterly reports containing details of all importations covered under the exemption. These reports will provide comprehensive data on:
- Importers benefiting from the policy
- Quantities of imported pharmaceutical materials
- Total value of the imported items
By maintaining detailed records, the NCS aims to prevent abuse of the exemption policy and ensure that it effectively meets its objectives of supporting local pharmaceutical production and reducing healthcare costs.
Call for Stakeholder Collaboration
The Customs Service emphasized that the success of this initiative depends on the cooperation of all stakeholders, including:
- Pharmaceutical importers
- Local manufacturers
- Relevant government agencies
The NCS reaffirmed its commitment to supporting government policies, stating that it will continue to play a crucial role in facilitating trade, ensuring border security, and contributing to national economic development.
By implementing this two-year import duty and VAT exemption, the Federal Government aims to strengthen Nigeria’s healthcare industry, enhance local production capabilities, and improve the availability of affordable medicines for citizens.
