The Nigeria Customs Service (NCS) has announced a two-year exemption from import duty and Value Added Tax (VAT) for critical raw materials essential for the production of pharmaceuticals.
According to the statement issued by the National Public Relations Officer, of the NCS, Assistant Comptroller Abdullahi Maiwada on Wednesday, the exemption was granted under a Presidential Executive Order.
Maiwada explained that the relief covers active pharmaceutical ingredients and other essential raw materials needed for 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, reducing the costs of medical equipment and consumables, as well as stimulating local investments, 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,” the statement said.
Maiwada added that these fiscal incentives are limited to manufacturers of pharmaceutical products recognised by the Federal Ministry of Health and Social Welfare, provided they possess a valid Tax Identification Number.
This measure, according to him, ensures that the benefits directly support legitimate manufacturers committed to strengthening Nigeria’s healthcare infrastructure.
The statement further noted that in commitment to transparency and effective monitoring, the NCS will compile quarterly reports detailing all importations under this policy, including data on importers, quantities, and values of the imported items, ensuring the policy’s implementation aligns with its intended objectives.
GIK/APA